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LABOR  AND  RECONSTRUCTION 
IN  EUROPE 


LABOR  AND 

RECONSTRUCTION   IN 

EUROPE 


BY 

ELISHA  M.  FRIEDMAN 

EDITOR,  AMERICAN  PROBLEMS  OF  RECONSTRUCTION 
FOEMERLY  STATISTICIAN,   EUGENE  MEYER  JR.  &  CO.,   NEW  YORK 


NEW  YORK 

E.  P.  DUTTON  &  COMPANY 

68i  FIFTH  AVENUE 


Copyright,  19 19, 
By  E.  p.  button  &  COMPANY 


All  Rights  Reserved 


Printed  In  the  United  States  of  America 


TO  MY  PARENTS 

this  fruit 

of  their  sacrifices 

is  dedicated 


CONTENTS 

PACE 

Foreword xvn 

CHAPTER  , 

I.  Reconstruction  Commissions  in  Foreign  Countries.      i 
II.  General  Problems  of  Reconstruction  Abroad   .     .     14 

III.  Some  Aspects  of  the  Labor  Question  in  Germany    .     40 

IV.  The  Labor  Problem  in  England 89 

Bibliography 201 

Index 209 


vu 


ANALYTICAL  TABLE  OF  CONTENTS 

CHAPTER  I 
RECONSTRUCTION  COMMISSIONS  IN  FOREIGN  COUNTRIES 

PAGE 

I.  France i 

II.  Germany 2 

III.  Great  Britain 4 

IV.  Canada 5 

V.  Italy 5 

VI.  Japan 6 

VII.  Russia 6 

VIII.  Belgium 8 

IX.  Serbia 9 

X.  Greece 9 

XI.  Austria 10 

XII.  Bulgaria 10 

XIII.  Holland 10 

XIV.  Scandinavian  Countries 11 

XV.  Spain 11 

XIV.  Chile 12 

XVII.  Brazil 13 

XVIII.  Colombia 13 

Opposition  to  Reconstruction  Discussions  ....  13 

CHAPTER  II 

GENERAL  PROBLEMS  OF  RECONSTRUCTION  ABROAD 

I.  The  Fundamental  Problem  and  the  Varying  Emphasis  .  14 

ix 


X       ANALYTICAL  TABLE  OF  CONTENTS 

PAGE 

n.  Germany 15 

(A)  General  Aspects. 

(B)  Official  Views. 

(C)  Demobilization. 

(D)  Raw  Materials. 

(E)  Restriction  of  Imports. 

(F)  Efficiency  and  Thrift. 

(G)  Tonnage. 

(H)  Trade  Policies. 

(I)    The  Financial  Situation. 

(J)    State  Control. 

(K)  Public  Debt. 

in.  England 21 

(A)  The  Relaxation  of  Effort  and  the  Decline  in  Power. 

(B)  The  British  Problem  as  Seen  from  Within. 

(C)  Demobilization.   ' 

(D)  Raw  Materials. 

(E)  Technical  Research. 

(F)  Recovery  of  Trade  Prestige. 

(G)  Financial  Facilities  for  Foreign  Trade. 

IV.  France 26 

(A)  General  Aspects. 

(B)  The  Need  for  the  Study  of  the  After  War  Problems. 

(C)  An  Appeal  to  the  Nation. 

(D)  Rehabilitation. 

(E)  Man-Power  and  Population. 

(F)  Labor  Problems. 

(G)  Industrial  Reorganization. 

(i)  Resources. 

(2)  Scientific  management. 
(H)  Foreign  Trade. 

(i)  The  economic  boycott. 

(2)  Difficulties  of  economic  alliances. 
(I)    Banking. 

(i)  Domestic  vs.  foreign  investments 

(2)  Banking  facilities. 
(J)    Public  Finance. 
(K)  State  Control. 


CHAPTER  III 
SOME  ASPECTS  OF  THE  LABOR  QUESTION  IN  GERMANY 

I.  Effects  of  the  War 40 

(A)  Industrial  Conscription. 

(B)  Women  in  Industry. 

II.  Emergency  Measures — Demobilization 43 

(A)  Number  of  Men  Involved. 

(B)  Outline  of  Plans. 

(C)  Limitations  of  Method. 


ANALYTICAL  TABLE  OF  CONTENTS  xi 


(D)  A  Unique  Program. 

(E)  Employment  Exchanges. 

(F)  Public  Works  and  Contracts. 

(G)  An  Official  Policy. 
(H)  Conclusion. 

III.  Demobilization  in  Austria 49 

(A)  Considerations  and  Plans. 

(B)  Official  Demobilization  Proposals. 

(C)  Demobilization  of  Material. 

(D)  Comparison  of  German  and  Austrian  Demobilization  Plans. 

IV.  Constructive  Policies 52 

(A)  The  Chambers  of  Labor. 

(i)  Previous  attempts  to  establish  chambers. 

(2)  Function  of  Works'  Committees. 

(3)  Chambers  of  Labor  Bill. 

(B)  The  Rights  of  Labor. 

(C)  Labor  Organization. 

(D)  Relief. 

(i)  Employment  agencies. 

(2)  Public  works. 

(3)  Insurance. 

(E)  Protective  Legislation.  I 

(F)  International  Measures. 

(G)  Political  Demands. 

V.  Labor's  Programs  of  Reconstruction 60 

(i)      The  Scheme  of  Social  Legislation  of  the  Social  Democratic  Party. 

(A)  Protection  of  Labor. 

(i)  General. 

(2)  Protection  of  health. 

(3)  Daily  working  hours. 

(4)  Night  work. 

(5)  Sunday  rest. 

(6)  Protection  of  female  workers. 

(7)  Protection  of  children  and  juveniles. 

(8)  Protection  of  home  workers. 

(9)  Industrial  inspection. 

(B)  Workmen's  Insurance. 

(C)  Public  Health. 

(D)  The  Right  to  Strike. 

(E)  Reform  of  the  Labor  Law. 

(F)  Representation  of  Workers*  Interests. 

(G)  Arbitration  Offices. 

(H)  Employment  Exchanges  and  Care  of  the  Unemployed. 
(I)    Poor  Law. 
(J)    Care  of  Juveniles. 
(K)  Housing. 

(L)   Imperial  Office  for  Social  Legislation. 
(M)  Measures  on  Behalf  of  Ex-soldiers,  Including  the  Disabled, 
(ii)    The  Reconstruction  Program  of  the  German  Trade  Unions. 

(A)  General  Economic  Measures. 

(B)  Food  Supply. 


xii  ANALYTICAL  TABLE  OF  CONTENTS 

PAGB 

(C)  Employment  Oflaces. 

(D)  Discharge  of  Soldiers  and  of  Persons  in  the  Auxiliary 

Service. 

(E)  Regulation  of  Working  Conditions  and  Protective  Legisla- 

tion. 

(F)  Aid  for  Soldiers  and  their  Dependents. 

(G)  Housing. 

(iii)   The  Reconstruction  Scheme  of  the  German  Social  Democratic 
Party. 

(A)  General  Economic  Policy. 

(B)  Monopoly,  Trade  and  Tariff  Questions. 

(C)  General  Financial  Policy. 

(D)  No  War  Indemnities. 

(E)  A  Principle  of  Taxation. 

(F)  War  Taxes. 

(G)  Levy  on  Property. 
(H)  Inheritance  Tax. 
(I)    Further  Proposals. 
(J)    Monopolies. 

(K)  Fiscal  Policy  of  a  Social  Democracy, 
(iv)   A  Working  Program  of  the  German  Social  Democracy — Economic 
and  Social  Demands. 

(A)  Political  Demands. 

(B)  Demands  for  the  Transition  to  Peace  Economy. 

(C)  Securing  the  Labor  Market  After  the  War. 

(D)  Workmen  to  Take  a  Share  in  the  Transition  Organization. 

(E)  Prevention  of  Monopolies. 

(F)  Commercial  Policy. 

(G)  Taxation  and  Financial  Reform. 
(H)  Social  Policy. 

(I)    Municipal  Policy. 

(i)  Finance  and  taxation. 

(2)  Relief. 

(3)  Hygiene. 

(4)  The  educational  system. 

CHAPTER  IV 
THE  LABOR  PROBLEM  IN  ENGLAND 

I.  General  Aspects 89 

(A)  The  Pre-War  Situation. 

(B)  The  Industrial  Situation  Today. 

(C)  The  Relations  of  Labor,  Capital  and  the  State. 

(i)  The  condition  of  labor  after  the  war. 

(2)  The  condition  of  capital. 

(3)  The  policies  of  labor  and  capital. 

(a)  Radical  views. 

(b)  Moderate  views. 

(4)  State  policies. 


ANALYTICAL  TABLE  OF  CONTENTS  xiii 


II.  The  Effects  of  the  War 96 

(A)  Labor  Supply. 

(B)  Labor  Efficiency. 

(C)  "National  Service." 

(D)  Studies  in  Labor  Welfare. 

(E)  Industrial  Unrest. 

III.  Emergency  Measures >; .     .     .1    .     .     .  104 

(A)  Demobilization. 

(i)  Of  soldiers. 

(a)  Principles  of  demobilization. 

(b)  Mechanics  of  demobilization. 

(i)    Committees  on  demobilization, 
(ii)  Procedure. 

(2)  Of  civilian  war  workers. 

(3)  Of  women. 

(4)  Of  youths. 

(s)  Of  war  materials. 

(B)  The  Restoration  of  Trade  Union  Conditions. 

(i)  Nature  of  suspended  rights  of  labor, 
(i)    Prevention  of  strikes, 
(ii)  Removal  of  restrictions  on  output, 
(iii)  Concessions  to  the  trade  unions. 

(2)  Pledges  to  restore  trade  union  conditions. 

(3)  The  difficulties,   the  dangers,   and  the  opportunities  of 
restoration. 

(a)  The  transformation  of  industry. 

(b)  The  industrial  changes. 

(c)  Dangers  of  a  sham  restoration. 

(d)  A  typical  case — women  in  industry  after  the  war. 

(C)  Complete  Schemes. 

(i)  Of  the  Liverpool  Fabian  Society. 

(a)  The  immediate  after-war  situation. 

(b)  The  problems  of  the  future. 

(c)  Remedial  measures  already  provided  for. 

(d)  Preventive  measures  recommended. 
(2)  Of  the  Carton  Foundation. 

(a)  Finding  jobs. 

(b)  Exodus  from  war  industries. 

(c)  Teaching  men  trades. 

(d)  Assuring  of  decent  wages. 

(e)  Industrial  friction. 

IV.  Long-Range  Labor  Policies 121 

(A)  A  Point  of  View. 

(i)  The  avenue  of  approach. 

(2)  Steadying  real  wages. 

(3)  Political  solutions. 

(B)  Radical  Policies. 

(i)  The  new  social  contract. 

(2)  The  new  principle. 

(3)  Definitions. 

(4)  Some  distinctions. 

is)  The  methods  of  the  radical. 


xiv  ANALYTICAL  TABLE  OF  CONTENTS 


(C)  Immediate  Programs  of  Liberals. 

(i)  The  resolutions  of  the  Trade  Union  Congress. 

(2)  The  report  of  the  Garton  Foundation. 

(a)  The  rela:tion  between  employers  and  employed. 

(b)  Four  principles  to  guide  the  attempt  to  solve  the 
industrial  problem. 

(c)  Works  Committees  and  Industrial  Coxmcils. 

(3)  Report  of  the  Committee  on  Industrial  Unrest  of  the  section 

of  Economic  Science  and  Statistics  of  the  British 
Association  for  the  Advancement  of  Science,  1916. 

(a)  Methods. 

(b)  Recommendations. 

(4)  The  five  points  of  the  New  Charter. 

(a)  Prevention  of  unemployment. 

(b)  The  maintenance  of  the  standard  rates. 

(c)  A  constitution  for  factor>'  and  industry. 

(5)  The  191 7  report  of  the  Committee  of  the  British  Association 
for  the  Advancement  of  Science. 

(a)  Shop  Steward's  Committee. 

(b)  Welfare  Committee. 

(c)  Social  Union. 

(6)  Recommendations  of  the  Committee  of  Inquiry  into  Indus- 

trial Unrest. 

(7)  The  Whitley  Reports. 

(a)  Descriptive  circular  of  the  Ministry  of  Labor. 

(b)  The  first  or  interim  report  of  the  sub-committee. 

(c)  Comment  of  the  ^Minister  of  Labor. 

(d)  Second  report,  covering  partly  organized  trades. 

(e)  Supplementary  report  on  works  committees. 

(f)  Final  report. 

(g)  Report  on  conciliation  and  arbitration. 

(h)  Joint    Standing    Councils   first   established    in    the 
pottery  trades. 

(D)  The  Reconstruction  Program  of  the  British  Labor  Party. 

(i)  The  end  of  a  civilization. 

(2)  The  pillars  of  the  house. 

(3)  The  universal  enforcement  of  a  national  minimum. 

(a)  The  legislative  regulation  of  employment. 

(b)  The  organization  of  demobilization. 

(c)  Securing  employment  for  all. 

(4)  The  democratic  control  of  industries 

(a)  Immediate  demobilization. 

(b)  Municipalization. 

(c)  Control  of  capitalist  industry. 

(5)  A  revolution  in  national  finance. 

(6)  The  surplus  for  the  common  good. 

(7)  The  street  of  to-morrow. 

(8)  More  light — but  also  more  warmth. 


INTRODUCTION 

By  William  B,  Wilson 
Secretary  of  Labor 

One  of  the  most  far-reaching  results  of  the  war  from  the  view- 
point of  social,  economic  and  political  development  is  the  realiza- 
tion that  has  come  to  labor  of  its  rights  and  responsibilities  in 
the  structure  of  government. 

The  modern  struggle  for  Democracy  began  with  the  demand  of 
the  nobles  for  the  right  to  share  with  the  king  the  privileges  and 
responsibilities  of  government.  That  was  followed  by  the  middle 
or  commercial  classes  insisting  upon  the  same  privilege.  Later 
the  workers  demanded  a  voice  in  the  affairs  of  state.  By  the 
middle  of  last  century  the  people  of  the  United  States  had 
achieved  almost  universal  manhood  suffrage.  Since  then  those 
intrusted  with  the  affairs  of  government  have  been  responsible 
to  all  of  the  people  for  their  acts  rather  than  to  any  one  group. 
But  the  change  came  so  gradually  and  with  so  little  of  upheaval 
and  conflict  that  it  took  the  dangers  and  duties  of  a  great  world 
war  to  bring  home  to  the  masses  of  the  people  a  full  realization 
that  they  are  the  real  power  and  final  authority  in  a  Democracy. 

Most  of  the  countries  of  Europe  were  in  the  second  stage  of 
this  development  until  the  revolutionary  forces  upset  the  estab- 
lished order  and  gave  to  the  workers  a  voice  in  their  respective 
governments.  In  many  of  these  countries  the  power  is  a  new 
one.  It  is  a  very  natural  desire  in  the  exercise  of  this  new  power 
to  secure  all  of  the  benefits  and  assume  none  of  the  responsibili- 
ties until  the  lessons  of  experience  demonstrate  that  after  all  ma- 
terial power  is  not  the  only  thing  to  be  striven  for  and  that  he 
serves  himself  and  country  best  who  serves  mankind. 

With  the  new  knowledge  of  its  power  labor  will  not  be  content 
to  return  again  to  the  system  under  which  it  was  treated  as  a 
commodity  to  be  used  when  wanted  and  cast  aside  in  periods  of 
industrial  depression  to  live  upon  the  reserves  that  should  be 
held  for  the  proverbial  rainy  day  or  suffer  the  pangs  of  privation. 


xvi  INTRODUCTION 

It  will  insist  that  every  man  shall  have  the  opportunity  to  earn 
a  living  on  a  basis  that  will  enable  him  to  enjoy  the  higher  things 
of  life  rather  than  simply  the  means  of  maintaining  a  physical 
existence. 

The  great  value  of  a  work  of  this  kind  is  that  it  brings  together, 
in  consecutive  order,  a  vast  amount  of  useful  information  at  an 
opportune  time,  when  those  who  most  desire  to  avail  themselves 
of  it  would  be  too  busy  to  assemble  it  themselves. 

There  is  another  value,  and  perhaps  the  greatest  of  all,  in 
books  like  this,  put  forth  at  such  a  time  of  storm  and  stress  in  the 
world.  They  induce  deliberative  thought,  and  this  has  always 
been  the  most  potent  factor  of  right  reason  in  the  progress  of 
mankind. 


LABOR  AND  RECONSTRUCTION 
IN  EUROPE 


FOREWORD 

The  war  is  over.  Steel  was  the  strait-jacket  as  well  as  the 
shield  of  democracy  in  the  struggle.  The  exigencies  of  the 
conflict  demanded  unquestioning  acceptance  of  abnormal  eco- 
nomic conditions.  Peace  has  brought  freedom,  indeed — freedom 
from  war-time  restraints,  and  also  freedom  to  renew  the  peren- 
nial struggle  which  prevails  among  the  balancing  forces  in  society. 

Whether  the  struggle — symbol  of  life — is  to  make  for  the  fur- 
therance of  the  accepted  ideals  of  justice,  of  freedom  of  op- 
portunity, of  social  responsibility  depends  upon  an  adequate 
understanding  of  the  situation  by  those  who  lead  or  follow  in  the 
light.  The  aim  of  this  book  is  to  contribute  to  such  an  under- 
standing. It  advocates  no  policy.  It  sponsors  no  scheme.  It 
deals  with  facts.  It  attempts  to  present  to  the  American  manu- 
facturer and  laborer  the  bold  outline  of  the  labor  situation  in 
Europe. 

The  labor  problem  is  admittedly  the  gravest  of  the  social  and 
economic  problems  that  are  coming  to  a  climax  which  the  new 
generation  will  have  to  meet.  The  problem  at  bottom  is  an  in- 
tellectual one.  From  understanding  proceed  sympathy  and  con- 
ciliation. Frightful  as  the  world  struggle  has  been,  it  becomes 
infinitely  more  so  if  society  will  not  benefit  by  its  lessons.  Power 
has  fled  before  righteousness,  dominion  before  freedom,  and  em- 
piricism before  science.  The  war  will  have  been  paid  for  if  there- 
by the  more  threatening  industrial  war  is  averted.  To  solve  the 
labor  problem  requires  a  desire  to  deal  justly  and  a  knowledge 
of  the  mechanics  of  industrial  democracy. 

America  requires,  in  addition,  a  knowledge  of  the  nature  of  the 
industrial  ailments  from  which  European  countries  have  suf- 
fered and  of  the  successful  methods  that  have  been  developed 
in  those  countries  to  mitigate  such  ailments.  In  the  victory  in- 
ternationalism triumphed  over  parochialism.  America  has  been 
drawn  out  of  her  isolation  politically  and  culturally.  The  world 
is  a-ferment  with  an  international  concept — the  league  of  na- 


xviii  FOREWORD 

tions,  sponsored  by  our  President.  In  the  affairs  of  nations 
America  will  be  either  a  bewildered  spectator  or  a  conscious  di- 
rector, depending  upon  the  prevalence  in  America  of  the  interna- 
tional mind. 

We  must  learn  to  appreciate  the  significance  of  labor  currents 
in  Europe.  England  lagged  after  Germany  in  her  social  legis- 
lation, and  the  United  States  ran  a  "bad  third"  behind  England. 
The  reason  is  not  far  to  seek.  Industrial  tradition  is  oldest  in 
England.  There  the  industrial  revolution  originated.  British 
coal,  British  iron,  and  Watt's  steam  engine  were  its  precursors. 
America  has  only  recently  become  an  industrialized  state.  A 
dense  urban  population  in  Britain  that  has  no  hinterland  to 
take  up  the  slack  in  unemployment  suffers  acutely  from  all  the 
attendant  evils.  In  America  the  farms  have  been  the  reservoir 
of  labor,  and  emigration  its  safety  valve.  In  England  you 
have  a  homogeneous  labor  element,  all  speaking  a  common 
tongue  and  thinking  common  thoughts.  American  labor  is  as 
polyglot  as  the  builders  in  Babel  and  as  variegated  as  the  cul- 
tural heritages  of  the  immigrant  groups.  Again,  a  school  of 
economists  is  teaching  and  leading  the  English  workmen. 
America  has  no  Sidney  Webb,  no  Cole,  no  Henderson.  Further, 
the  Briton  has  a  political  bent  which  enables  him  to  develop 
the  institutions  that  will  meet  his  economic  needs.  America 
is  encumbered  by  a  written  Constitution,  which  checks  free 
political  development, 

Germany's  rapid  advance  in  social  legislation  is  due  to  the 
fact  that  her  industrial  scheme  was  organized  after  the  unification 
of  the  Empire.  She  was  then  able  to  incorporate  the  best  ele- 
ments developed  in  Great  Britain.  With  a  docile  people  under 
centralized  leadership  and  with  a  scientific  conception  linked 
to  a  socialized  organization,  she  soon  overtook  and  led  her  teacher. 

The  United  States  is  the  latest  of  the  three  to  become  indus- 
trialized. The  process  was  merely  accelerated  during  the  war, 
when  thousands  were  drawn  from  the  land  to  the  munitions  works. 
We  cannot  avoid  the  evils  of  industrialism.  We  must  with  discern- 
ment cull  the  best  that  foreign  labor  programs  offer.  We  may 
not  have  had  the  benefit  of  a  reconstruction  ministry,  as  in  Eng- 
land, or  of  a  commission  of  transition  economy,  as  in  Germany. 
But  in  a  sense  the  fruits  of  their  labors  are  ours.     Europeaa 


FOREWORD  XIX 

programs  of  reconstruction  afford  a  guide  to  our  own  country. 
It  is  the  aim  of  this  book  to  present  them. 

The  work  was  carried  on  largely  in  spare  haurs  of  the  eve- 
nings and  week-ends.  The  text  was  dictated  chiefly  in  the  spring 
of  1918.  No  doubt  the  critic  will  see  evidences  of  hasty  execution. 
However,  the  only  alternative  was  to  have  left  the  field  vacant,  for 
not  a  single  attempt  has  been  made  in  the  United  States  to  pre- 
sent in  a  unified  way  the  material  collected  in  this  volume. 
Quotations  are  given  rather  than  the  author's  version,  so  as  to 
preserve  the  original  point  of  view. 

Again  the  author  acknowledges  a  debt  of  gratitude  to  Dr.  Leo 
Wolman,  of  Johns  Hopkins  University,  Dr.  Walton  H.  Hamil- 
ton, of  the  War  Labor  Policies  Board,  Mr.  B.  V.  Cohen,  of 
counsel,  United  States  Shipping  Board,  and  particularly  to  Mr. 
W.  Jett  Lauck,  Secretary  of  the  National  War  Labor  Board,  for 
their  suggestions.  Miss  Laura  A,  Thompson,  librarian  of  the 
United  States  Department  of  Labor,  has  been  of  aid  in  ex- 
tending the  facilities  of  the  Department  library,  from  which 
much  of  the  material  here  presented  has  been  gathered.  Mr. 
Bernard  H.  Lane,  of  the  United  States  Geological  Survey,  has 
read  the  proof  with  great  care. 

E.  M.  F. 
Cosmos  Club, 

Washington,  D.  C. 
January  25,  1919. 


LABOR  AND  RECONSTRUCTION 
IN  EUROPE 

CHAPTER  I 

RECONSTRUCTION  COMMISSIONS  IN 
FOREIGN  COUNTRIES 

It  is  only  by  studying  the  steps  taken  by  the  various  countries, 
belligerent  or  neutral,  on  all  the  continents  that  we,  in  the  United 
States,  can  properly  understand  the  meaning  of  reconstruction. 

FRANCE  ^ 

France  was  the  first  country  to  make  any  provision  for  the 
after-war  period.  It  was  because  her  territories  were  devastated 
that  her  statesmen  were  compelled  to  cope  with  the  problems 
of  rehabilitation.  On  May  i8,  191 6,  the  President  of  the  French 
Republic  created  an  interministerial  committee  to  aid  in  the  re- 
construction of  the  invaded  regions.  About  a  year  later,  this 
commission  was  reorganized  by  a  Presidential  Order.  It  includes 
the  Ministers  of  the  Interior,  of  Public  Works  and  Transporta- 
tion, of  Agriculture,  of  Labor  and  Social  Prophylaxis,  and  of 
War  and  Munitions,  as  well  as  the  under-secretaries  of  the  Gen- 
eral Administration  of  the  Army  and  of  Commerce,  Industry, 
Posts,  and  Telegraphs. 

In  August,  191 7,  a  law  was  passed  to  open  an  agricultural  credit 
of  three  hundred  million  francs  for  the  purpose  of  purchasing 
draft  animals,  cattle,  seed,  grain,  plants,  and  other  material 
urgently  needed  for  the  resumption  of  agricultural  life  in  the 
devastated  departments  of  the  North.  A  similar  measure  was 
enacted  to  aid  the  merchants  in  the  invaded  regions  in  purchas- 
ing the  raw  materials  and  tools  needed  for  the  restoration  of  in- 
dustry. 

*  Bulletin  de  Statistique  et  de  Legislation  Comparee,  August,  Sep- 
tember, October,  1917. 


2        LABOR  AND  RECONSTRUCTION  IN  EUROPE 

On  September  25,  191 7,  by  Presidential  Order,  the  Ministry  of 
Public  Works  and  Transportation  was  constituted  as  a  special 
committee  charged  with  studying  the  means  needed  to  rebuild 
dwellings  and  to  restore  real  property  that  had  been  damaged 
or  destroyed  by  the  invaders.  This  committee  includes  represen- 
tatives of  the  various  cabinet  departments  and  of  their  bureaus. 
Its  duties  are  to  conduct  investigations,  to  control  building  ma- 
terials, to  find  manual  labor  and  means  of  transportation,  and 
to  prepare  the  necessary  plans. 

In  a  letter  to  the  President  dated  October  i,  191 7,  the  Minis- 
ter of  Finance  pointed  out  that  although  installments  had  been 
paid  to  the  war  sufferers  to  apply  on  the  contemplated  reim- 
bursement for  the  damage  inflicted  on  them,  this  measure 
was  inadequate  to  revive  economic  activity.  He  therefore  recom- 
mended the  establishment  of  a  commission  to  study  the  means 
of  organizing  credit  so  as  to  facilitate  the  restoration  of  indus- 
try and  agriculture.  Shortly  thereafter  (October  17)  the  Presi- 
dent appointed  such  a  commission  under  the  presidency  of  the 
Minister  of  Finance  and  including  representatives  of  the  several 
ministries,  economists,  engineers,  bankers,  and  members  of  cham- 
bers of  commerce  and  of  agricultural  and  industrial  associations. 

GERMANY  ^ 

Reconstruction  in  its  wider  aspects  was  taken  up  in  Germany 
officially  in  August,  19 16.  On  the  3d  of  that  month  the  Bundes- 
rat  issued  a  decree  nominating  an  Imperial  Commission  for 
Economic  Transition  ( Reichscommissariat  fiir  Ubergangswart- 
schaft).  This  law  specifically  empowered  the  Commission  to 
control  the  importation  and  distribution  of  merchandise.  The 
Commission  was  to  be  aided  by  the  officials  of  the  Empire,  rep- 
resentatives of  the  Federal  States,  and  a  number  of  specialists. 
The  duties  of  the  Commission,  according  to  an  address  of  the 
Finance  Minister,^  were  to  bring  the  soldiers  back  to  civil  life, 
to  care  for  the  disabled  and  provide  suitable  work  for  them, 

'  Vorwaerts,  Aug.  9,  1917;  Deutsche  Tageszcitiing,  Aug.  31,  1917; 
Bulletin  de  Statistique  et  de  Legislation  Comparee,  October,  1917,  pp. 
656-657;  Board  of  Trade  Journal,  Jan.  31,  1918;  Vossische  Zeitung, 
Feb.  7,  1918;  Norddeutsche  Allgemcine  Zeitung,  Feb.   19,  19x8. 

^  Helfferich,  at  a  meeting  of  the  Reichstag  Committee  on  Trade  and 
Commerce,  October  14,  1916. 


COMMISSIONS  IN  FOREIGN  COUNTRIES  3 

to  eliminate  women  and  children  from  the  labor  market,  and 
to  restore  protective  labor  laws.  Its  additional  tasks  were  to 
study  the  raw  material  and  shipping  situation,  to  establish  cred- 
its based  on  real  and  personal  property,  to  revive  trade,  to  deflate 
the  currency,  and  to  make  liquid  the  capital  tied  up  in  war  loans. 

The  Commission  consists  of  nine  departments,  covering  (i) 
finance;  (2)  transportation;  (3)  iron  ores,  timber,  paper,  and 
stone;  (4)  the  nonferrous  metals,  graphite,  and  clay;  (5)  textiles, 
with  subdepartments  for  cotton,  wool,  flax,  and  textile  substi- 
tutes, etc.;  (6)  food,  feeds,  and  meats;  (7)  overseas  imports,  as 
rubber,  tobacco,  sausage  skins,  oils  and  fats,  hides  and  leathers; 
(8)  overland  imports;  (9)  the  general  organization  of  transition 
economy,  priority,  rationing,  demobilization,  and  general  eco- 
nomic and  legal  questions.  There  are  also  two  special  depart- 
ments covering  statistics  and  administration.  To  aid  the  Com- 
mission in  its  work,  the  Bundesrat  also  formed  a  Transition 
Economy  Parliament,  an  advisory  council  of  over  250  members, 
divided  into  21  subcommittees  and  including  some  of  the  leading 
financiers  and  manufacturers. 

On  October  21,  191 7,  the  Imperial  Ministry  of  Economics 
(Reichswirtschaftsamt)  was  created  to  deal  with  problems  of  re- 
construction. This  new  Ministry,  whose  purpose  was  to  unify 
the  divers  measures  already  undertaken,  took  over  that  part  of 
the  duties  of  the  Ministry  of  the  Interior  which  dealt  with  social 
and  economic  problems  and  absorbed  the  Imperial  Commission 
for  Transition  Economy.  The  Ministry  of  Economics  has  un- 
der its  jurisdiction  policies  affecting  industry,  taxation,  statistics, 
bourses  and  banks,  tariffs,  treaties,  foreign  trade,  and  social  legis- 
lation. Its  main  tasks  are  at  present  to  find  a  supply  of  raw 
material  and  foodstuffs,  to  supply  and  distribute  ocean  tonnage, 
to  improve  the  rate  of  exchange,  and  in  general  to  facilitate  the 
transition  from  a  war  regime  to  that  of  peace.  It  is  divided  into 
two  main  sections,  one  dealing  with  commercial  and  economic 
questions  and  the  other  with  domestic  social  policy.  The 
former  is  divided  into  three  subsections — one  dealing  with  agri- 
culture, manufacturing,  and  banking,  which  are  further  classi- 
fied by  industries,  and  with  compulsory  amalgamation  of  industry, 
taxation,  and  related  subjects;  another  dealing  with  navigation, 
water  power,  fisheries,  etc. ;  and  a  third  dealing  with  economic  in- 


4        LABOR  AND  RECONSTRUCTION  IN  EUROPE 

telligence  and  information,  exhibitions,  publications,  propaganda, 
and  chambers  of  commerce  abroad. 


GREAT  BRITAIN 

Late  in  191 6  the  British  Board  of  Trade  appointed  commit- 
tees in  the  various  trades  "to  consider  their  position  after  the 
war,  with  special  reference  to  international  competition,  and  to 
report  such  measures  as  might  be  necessary  to  safeguard  those 
positions." 

After  vigorous  appeals  by  influential  Englishmen  like  Sidney 
Webb  and  Lord  Parker  of  Waddington,  and  largely  as  a  result 
of  the  study  of  the  progress  of  preparations  for  peace  made  in 
other  countries.  Great  Britain  on  August  21,  191 7,  established  a 
Ministry  of  Reconstruction,  "to  promote  organization  and  de- 
velopment after  the  termination  of  the  war."  *  The  act  of  Parlia- 
ment provided  that  "it  shall  be  the  duty  of  the  Minister  of  Re- 
construction to  consider  and  advise  upon  the  problems  which 
may  arise  out  of  the  present  war  and  may  have  to  be  dealt  with 
upon  its  termination,  and  for  the  purposes  aforesaid  to  institute 
and  conduct  such  inquiries,  prepare  such  schemes,  and  make 
such  recommendations  as  he  thinks  fit."  The  act  also  required 
that  "the  Minister  present  a  report  to  Parliament  each  year  of 
such  of  the  schemes  prepared  and  recommendations  made  by  him 
as  he  shall  deem  suitable  for  publication." 

Shortly  after  its  organization  the  Ministry  published  a  list 
of  its  committees  and  commissions,  87  in  all,  classified  into  the 
following  15  groups:  " 

(i)  Trade  development. 

(2)  Finance. 

(3)  Raw  materials. 

(4)  Coal  and  power. 

(5)  Intelligence. 

(6)  Scientific  and  industrial   research. 

(7)  Demobilization  and  disposal  of  stores. 

(8)  Labor  and  employment. 

(9)  Agriculture  and  forestry. 
(10)  Public  administration. 

*  New  Ministries  Act,  1917  :  7  &  8  Geo.  V.  c.  44. 

*  See  Appendix  for  list  of  committees  and  their  functions. 


COMMISSIONS  IN  FOREIGN  COUNTRIES  5 

(11)  Housing. 

(12)  Education. 

(13)  Aliens. 

(14)  Legal   (pre-war  contracts  and  "period  of  the  war"). 

(15)  Miscellaneous  (munitions,  land  settlement,  and  civil  serial 
transport). 

The  reports  of  many  of  these  committees  have  been  submitted 
to  Parliament,  and  several  have  been  published. 

CANADA  * 

In  Canada  an  unofficial  committee  called  the  Canadian  In- 
dustrial Organization  Association  was  formed  early  in  19 18,  to 
consider  and  prepare  to  meet  the  after-war  problems  in  indus- 
try, to  maintain  industrial  stability,  and  to  promote  wise  con- 
sideration and  treatment  of  reconstruction  problems.  According 
to  a  statement  issued  by  the  Executive  Committee  of  the  As- 
sociation, it  will  investigate  the  conditions  of  the  various  in- 
dustries, the  markets  which  they  must  supply,  the  particulars  of 
labor  competition,  and  the  comparative  cost  of  transportation. 
Among  its  aims  are  to  promote  better  relations  between  capital 
and  labor,  to  improve  the  social  and  industrial  welfare  of  women, 
to  support  technical  and  general  education,  to  increase  coopera- 
tion among  rural  producers,  to  improve  rural  conditions,  and  to 
provide  for  land  settlement  of  the  demobilized  army. 

ITALY' 

In  the  early  part  of  1918  the  Italian  Government  created  a 
central  commission  to  study  and  formulate  measures  needed  to 
effect  a  transition  from  a  state  of  war  to  a  state  of  peace.  There 
had  been  various  committees  working,  but  the  establishment  of 
a  new  Ministry  of  Economic  Reorganization  was  advocated  to 
consider  the  acquisition  of  raw  materials  for  manufactures,  the 
increase  of  the  Italian  merchant  marine,  the  regulation  of  foreign 
exchange  by  the  control  of  trade,  and  the  treatment  of  problems 
in  labor,  in  education,  and  in  social  policy.    The  central  com- 

*New  York  Times,  June  9,  1918. 

*  Weekly  Bulletin,  Canadian  Department  of  Trade  and  Commerce, 
May  27,  1918. 


6    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

mission  has  two  auxiliary  bodies,  one  of  which  deals  with  ad- 
ministrative, judicial,  and  social  questions,  and  the  other  with 
problems  of  industry,  commerce,  and  agriculture.  Each  of  the 
auxiliary  bodies  will  be  subdivided  into  sections  to  investigate  the 
questions  apportioned  to  them  and  to  submit  their  findings  to 
the  central  commission,  which  is  to  draft  a  report  to  Parliament. 

JAPAN  ® 

With  a  view  to  inaugurating  new  policies  so  as  to  insure  a  con- 
tinuation of  its  prosperity  after  the  war,  Japan  has  appointed  an 
Economic  Commission,  consisting  of  representatives  of  the  de- 
partments of  Foreign  Affairs,  of  Finance,  of  Communications,  and 
of  Agriculture  and  Commerce,  who  are  to  have  the  assistance 
of  distinguished  Japanese  scientists.  The  scope  of  the  Com- 
mission's work  will  include  a  study  of  the  war-time  conditions 
of  industries,  of  the  means  of  retaining  foreign  trade,  especially 
in  the  Far  East,  and  of  fostering  the  newly  established  indus- 
tries. The  work  will  include  investigations  of  the  necessary 
tariff  reforms  and  of  the  effect  of  the  war  on  national  and  in- 
ternational finance.'^ 

As  a  part  of  the  plan  for  developing  foreign  trade  there  was 
established  in  Yokohama  a  bureau  which  is  to  investigate  foreign 
trade  conditions  and  to  collect  and  exhibit  samples  of  imported 
and  exported  goods  and  catalogues  and  magazines.  It  is  further 
intended  to  send  technical  commissioners  abroad  to  study  types 
of  industry  so  as  to  obtain  information  by  means  of  which  the 
efficiency  of  native  industries  may  be  maintained.  The  installa- 
tion of  exhibits  of  samples  of  Japanese  goods  in  various  countries 
is  another  feature  of  the  after-war  trade  program. 

RUSSIA  ^° 

In  19 1 6  the  Russian  Empire  had  appointed  a  commission  to 
study  the  problems  of  transition  from  war  to  peace.  Its  program 
was  to  include  the  development  of  the  resources  of  the  Empire, 

'  Weekly  Bulletin,  Canadian  Department  of  Trade  and  Commerce, 
Aug.  12,  1918. 

'Japanese  OMcial  Gasette,  quoted  in  The  Americas,  April,  1917. 

"  Abstract  of  Journal  of  Russian- American  Chamber  of  Commerce, 
Moscow,  October,  1916,  given  in  Commerce  Reports,  Feb.  8,  1917. 


COMMISSIONS  IN  FOREIGN  COUNTRIES  7 

to  adapt  industrial  concerns  that  were  operating  on  a  war  basis 
to  peace  conditions,  to  procure  raw  material,  fuel,  and  machinery, 
and  to  obtain  employment  for  the  demobilized  army  and  navy. 
In  addition,  the  problems  of  currency  and  of  the  public  debt  were 
to  be  taken  up.  The  work  of  this  economic  and  financial  com- 
mission included  among  others  the  following  topics: 

I.    Foreign  trade. 
II.    Attraction  of  foreign  capital. 

III.  Development  of  ways  of  communication: 

(i)  Financial    measures    necessary    for    railway    con- 
struction and  waterway  improvement. 

(2)  Measures  to  coordinate  rail  and  water  transporta- 

tion. 

(3)  Commercial  navigation. 

(a)  Creation  of  a  commercial  fleet,   improvement 

of  conditions  of  commercial  navigation,  and 
construction  of  ports. 

(b)  Development   of   navigation    by   sea,    particu- 

larly the  establishment  of  a  northern  water 
route. 

*  *  * 

IV.  Development  and  improvement  of  agriculture. 
V.     Development  of  industry: 

(4)  Establishment  of  credit  for  industrial  concerns. 

*  *  * 

(6)  Measures    relating   to   individual   branches   of   in- 
dustry  and   the   promotion   of   new   branches   of 
industry  to  manufacture  articles  now  imported. 
VI.     Regulation  of  foreign  and  domestic  trade: 

(i)  Measures  for  promoting  the  sale  of  goods  exported 
from  Russia;  the  establishment  of  permanent 
official  bureaus  both  in  Russia  and  abroad  for 
supplying  information  and  promoting  foreign 
trade;  development  of  consular  service. 
VII.  Measures  for  utilizing  natural  resources  and  developing 
industrial  life  in  the  north  of  European  Russia 
and  various  districts  of  Asiatic  Russia. 
VIII.     Measures  relating  to  State  dominions: 

(i)   Extension  and  improvement  of  forestry. 


8        LABOR  AND  RECONSTRUCTION  IN  EUROPE 

(2)  Exploitation  of  mineral  resources  and  State  prop- 

erty. 

(3)  Introducing  system  in  industry  and  trade. 

BELGIUM  ^^ 

Upon  the  recommendation  of  the  Belgian  Minister  of  Foreign 
Affairs,  King  Albert  created  a  Ministry  of  Economic  Affairs  on 
October  12,  191 7.  In  the  words  of  the  report  recommending 
the  establishment  of  such  a  body,  ''The  destruction  and  ravages 
of  the  war  and  the  illegal  despoiling  of  our  resources  by  the 
enemy  had  previously  led  the  Government  to  create  a  number  of 
organizations  to  prepare  for  the  restoration  of  the  economic  life 
of  the  Kingdom.  However,  it  is  advisable  that  the  work  of  eco- 
nomic reconstruction  be  directed  after  methodical  plans  in  which 
all  the  great  national  interests  will  be  harmonized.  There  should 
be  an  intelligent  unity  of  conception  in  the  economic  field.  A 
wisely  coordinated  plan  will  promote  the  best  interests  of  the  na- 
tion. A  consideration  of  the  ends  to  be  attained  and  of  the  facts 
involved  lead  me  to  the  conviction  that  only  a  new  department 
will  be  able  to  prepare  adequate  solutions  to  the  grave  ques- 
tions which  will  crowd  in  upon  us." 

Article  II  of  the  law  provides  that  "there  will  be  attached  to 
the  Ministry  of  Economic  Affairs  (a)  the  Bureau  of  Economic 
Studies;  (b)  the  Committee  of  Economic  Inquiry  at  London, 
Paris,  and  The  Hague;  (c)  the  Italo-Belgian  Committee  of 
Economic  Studies;  (d)  the  Belgian  delegation  to  the  Permanent 
International  Committee  of  Economic  Policy;  (e)  the  Bureau  of 
Industry  created  in  order  to  study  the  measures  to  be  taken  and 
the  policy  necessary  for  the  industrial  reconstruction  of  Belgium; 
(/)  the  National  Consulting  Committee  of  Minerals  and  Metals; 
(g)  the  Commission  for  the  Industrial  and  Agricultural  Revival 
of  Belgium;  (h)  the  Bureau  of  War  Devastation."  Article  III 
provides  that  "the  Minister  of  Economic  Affairs  shall  take  over 
from  the  other  ministers  their  partly  completed  plans  for  eco- 
nomic reconstruction." 

Immediately  upon  his  appointment  the  new  minister  recom- 
mended  the  formation  of  an  Economic  Council,  consisting  of 

^Bulletin  de  Stattstique  et  de  Legislation  Comparee,  January,  1918. 
Coinmerce  Reports.  June  6,  1918.  Christian  Science  Monitor,  Apr.  24, 
1918.    Nciv  York  Times,  Feb.  24,  1918. 


COMMISSIONS  IN  FOREIGN  COUNTRIES  9 

experts  outside  of  Belgium,  to  whom  he  might  look  for  advice  and 
cooperation.  This  body  was  established  by  Royal  Decree  on 
October  13,  191 7.  A  Reconstruction  Mission,  consisting  of  a 
representative  of  the  Belgian  Board  of  Trade,  some  scientists, 
some  labor  representatives,  and  technical  experts,  is  to  visit  the 
United  States  for  the  purpose  of  making  a  survey  of  American 
industrial  methods  that  may  be  applied  in  rebuilding  Belgium. 

An  industrial  company  whose  aim  is  to  assist  in  the  purchase 
of  tools  and  raw  materials  of  all  kinds,  metals,  leather,  textiles, 
chemicals,  farming  and  other  machinery,  electrical  goods,  cars, 
and  trucks  was  organized  with  an  official  status  under  the  title 
Comptoir  national  pour  la  reprise  de  I'activite  economique  en 
Belgique. 

SERBIA  ^2 

Knowing  of  the  collapse  of  agricultural  and  commercial  activity 
in  Serbia,  the  State  has  undertaken  to  assist  and  control  private 
initiative  in  the  attempt  to  revive  the  national  industrial  life. 
The  Ministry  of  Commerce  communicated  with  traders  and 
banks  and  others  concerned  in  the  re-provisioning  of  the  country 
so  as  to  regulate  the  quantity,  price,  and  origin  of  imports. 
Special  preference  is  to  be  given  to  the  Allies. 

On  the  assumption  that  the  Central  Powers  would  retain 
Serbia,  the  Hungaro-Bosnian  and  Oriental  Economic  Central 
Association  has  undertaken  a  study  of  the  reconstruction  needs 
of  the  country  in  agriculture,  industry,  and  trade,  as  well  as  in 
social  and  cultural  institutions. 

GREECE  ^^ 

The  Greek  Minister  of  National  Economy  invited  several  heads 
of  industrial  affairs  to  deliberate  with  him  in  order  to  establish 
an  economic  policy  for  Greece  in  the  future.  The  subjects  under 
discussion  were  to  be  these: 

(i)  The  advantages  and  knowledge  Greece  has  obtained  from 
the  war, 

(2)  The  means  of  finding  fuel  for  the  factories. 

"British  Board  of  Trade  Journal,  Feb.  i,  1917.    "Our  economic  and 
cultural  work  in  conquered  Serbia,"  by  Dr.  Constantine  Partos. 
"  Board  of  Trade  Journal,  Aug.  8,  1918,  p.  186. 


10      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

(3)  The  encouragement  of  private  initiative  by  the  State. 

(4)  The  best  means  of  furnishing  raw  material  to  the  different 
industries. 

(5)  Food  conditions  and  munitions. 

(6)  How  to  strengthen  existing  industries  and  create  new  ones. 

(7)  Industrial  legislation  and  elementary  and  secondary  techni- 
cal instruction. 

Two  manufacturers  will  be  appwinted  to  present  a  preliminary 
report  on  each  subject. 

AUSTRIA  ^* 

Like  Germany,  Austria  also  has  a  Minister  for  Transition 
Economy.  In  Hungary  an  inter-ministerial  commission  was 
recently  formed  to  provide  for  the  distribution  and  utilization  of 
military  goods  which  are  no  longer  needed  on  demobilization.  The 
commission  will  be  charged  with  the  distribution  of  these 
goods  among  the  various  branches  of  production  and  with  the 
control  of  the  central  organization  which  is  to  be  formed  to  carry 
out  the  actual  work.  The  commission  consists  of  the  Minister 
for  Transition  Economy  (as  president)  and  one  representative 
from  each  of  the  Ministries  of  Trade,  Agriculture,  Finance,  the 
Interior,  National  Defense,  Transition  Economy,  and  National 
Welfare,  and  the  National  Food  Ministry. 

BULGARIA  ^^ 

In  anticipation  of  a  revival  of  trade  after  the  war,  Bulgaria 
developed  water-power  facilities,  created  a  bank  for  the  pro- 
motion of  trade,  and  founded  a  great  variety  of  banks  for  the 
financing  of  industry,  with  a  total  capitalization  of  about  fifty 
million  dollars. 

HOLLAND  ^* 

On  July  2,  191 8,  the  Netherlands  Minister  of  Foreign  Affairs 
inaugurated  an  after-war  policy  by  founding  an  Advisory  Com- 
mission for  Economic  Information  Abroad,  with  a  view  to  coping 
with  the  increased  impediments  in  the  world's  traffic  after  the 
war.     Among  the  plans  of  this  Commission  are  an  increase  in 

"  Pester  Lloyd,  Board  of  Trade  Journal,  Alar.  28,  1918. 

'^^  Covimerce  Reports,  Oct.  27,  1917;  Jan.  22,  1918. 

"  Commerce  Reports,  Sept.  3,  1918.    New  York  Times,  Aug.  7,  1918. 


COMMISSIONS  IN  FOREIGN  COUNTRIES  ii 

the  number  of  consuls,  improvements  in  the  facilities  for  travel 
by  consuls,  and  the  creation  of  the  office  of  technical  adviser  at 
the  important  consular  posts. 

SCANDINAVIAN    COUNTRIES" 

Representatives  of  the  Scandinavian  countries  assembled  at 
Stockholm  in  the  fall  of  191 7,  to  consider  means  for  the  protec- 
tion of  Scandinavian  trade  after  the  war,  in  the  direction  of  fur- 
ther commercial  cooperation,  the  adoption  of  uniform  commercial 
law,  a  revision  of  the  maritime  law,  and  the  further  maintenance 
of  the  Scandinavian  Coin  Convention. 

In  order  to  acquire  greater  economic  independence  and  thus 
reduce  importations  to  the  least  possible  amount,  the  Norwegian 
Government  has  established  a  Department  of  Industrial  Supply, 
whose  function  it  will  be  to  develop  the  natural  resources  and 
build  up  the  industrial  organization  of  the  country. 

In  Sweden  a  new  organization  was  formed  in  the  summer  of 
1 91 8  to  aid  the  export  trade  after  the  war.  As  a  result  of  the 
close  cooperation  in  Germany  between  the  State  and  industry, 
Swedish  merchants  felt  the  need  of  following  and  meeting  all 
measures  taken  in  foreign  countries  which  may  be  inimical  to 
Swedish  interests.  By  cooperation  and  centralization  Swedish 
traders  intend  to  secure  the  most  favorable  prices  and  condi- 
tions. An  expert  committee  capable  of  negotiating  new  trade 
treaties  is  an  outgrowth  of  the  new  organization. 

SPAIN  ^^ 

The  King  of  Spain  appointed  late  in  191 7  a  commission  headed 
by  the  Directorate-General  of  Industry  and  Commerce,  which 
within  four  months  was  to  draw  up  a  memorandum  dealing  with 
the  foreign  trade  of  Spain.  The  subjects  on  which  the  commis- 
sion was  to  report  cover  the  following: 

"(i)  The  state  of  the  foreign  trade  of  Spain  in  191 3  and 
19 1 4,  classified  by  countries  and  articles  and  citing  the  com- 

"  Loyidon  Economist,  Oct.  20,  iQi";  Commerce  Rciorts,  Feb.  7,  1918; 
Tidsskrift  for  Industri,  quoted  in  Commerce  Reports,  July  6,  1918. 

^*  Gaceta  de  Madrid,  Oct.  15,  1917.  Board  of  Trade  Journal,  Nov. 
22,  1917.    British  Board  of  Trade  Journal,  Aug.  i.  1918. 


12       LABOR  AND  RECONSTRUCTION  IN  EUROPE 

petition  encountered  and  the  reasons  Spanish  manufacturers 
found  it  impossible  to  retain  certain  markets. 

"(2)  The  disturbance  in  the  world  market  occasioned  by  the 
war;  nations  that  have  suspended  their  exports;  nations  that 
have  maintained  their  exports,  showing  the  extent  and  the  con- 
ditions; markets  lost  and  won  by  Spain;  the  permanent  and 
transitory  character  of  new  exports  from  Spain;  the  strengthening 
of  former  branches  of  the  export  trade;  Spanish  industries  that 
have  increased  their  productive  capacity  by  entering  new  markets. 

"(3)  The  analysis  of  the  economic  consequences  of  the  war, 
either  the  possibility  of  economic  wars  and  the  formation  of  two 
irreconcilable  groups,  or  the  necessity  for  living  together  eco- 
nomically with  no  greater  separation  than  that  of  differential 
tariffs  among  allies;  the  consequences  to  Spain  of  either  form 
of  international  trade  arrangements,  and  the  foundation  on  which 
Spain  may  base  the  continuation  of  its  economic  relations  with 
the  various  groups;  an  inquiry  into  the  system  of  commercial 
treaties,  including  a  consideration  of  the  'most  favored  nation' 
clause;  a  tariff  for  encouraging  Spanish  industries;  and  a  de- 
fensive customs  tariff  to  counteract  export  bounties, 

"(4)  Economic  independence  of  any  country  is  not  entirely 
desirable,  as  it  might  isolate  that  country  from  the  rest  of  the 
world;  the  commission  is  therefore  to  include  a  classification,  by 
countries,  the  market,  and  products,  of  the  goods  which  Spain 
can  contribute  toward  the  trade  of  the  world  in  such  a  manner 
as  to  allow  Spain  to  obtain  supplies  from  foreign  countries  and 
build  up  home  industries  by  acquiring  outlets  abroad." 

Late  in  19 18  the  Minister  of  Public  Works  announced  the 
establishment  of  an  organization  which  "will  forthwith  take  care 
of  the  economic  life  of  Spain  both  for  the  period  of  transition  be- 
tween war  and  peace  and  for  the  lines  of  policy  which  will  have 
to  be  followed  after  the  war." 

CHILE  *" 

On  September  6,  191 7,  the  President  of  Chile  appointed  a 
committee  to  investigate  and  report  on  the  condition  which  the 
industries  and  commerce  of  Chile  will  face  upon  the  reestab- 
lishment  of  peace  and  on  the  competition  between  domestic  and 

^^  Commerce  Reports,  Dec.  15,  1917. 


COMMISSIONS  IN  FOREIGN  COUNTRIES  13 

imported  commodities  and  to  recommend  measures  for  the  pur- 
pose of  protecting  the  domestic  industries  in  their  present  ad- 
vanced condition  and  encouraging  their  further  development. 

BRAZIL  ^^ 

Some  recent  economic  measures  in  Brazil,  though  not  strictly 
relating  to  after-war  reconstruction,  indicate  a  foresighted  na- 
tional attitude.  At  a  recent  meeting  of  the  Commercial  As- 
sociation of  Rio  de  Janeiro  it  was  proposed  to  extend  the  com- 
merce of  Brazil  by  studying  how  to  increase  reciprocal  commercial 
relations  between  Brazil  and  her  allies,  by  asking  for  suggestions 
from  chambers  of  commerce  in  foreign  countries  concerning 
Brazilian  legislation,  tariffs,  exchange,  and  merchant  marine,  cUid 
by  intensifying  domestic  production. 

COLOMBIA  2^ 

A  financial  conference  of  the  representatives  of  several  cham- 
bers of  commerce  in  Colombia  convened  in  the  summer  of  191 8 
to  study  the  decline  in  foreign  exchange,  its  cause  and  remedy, 
the  deficiency  of  currency,  and  the  fiscal  crisis. 

OPPOSITION   TO   RECONSTRUCTION    DISCUSSIONS 

In  England  some  of  the  leading  publications  have  opposed  the 
discussion  of  after-war  conditions  because  of  the  many  uncer- 
tain factors  in  the  situation.  The  London  Economist  (May  4, 
1918)  severely  criticized  the  report  of  the  Balfour  Committee 
on  Commercial  and  Industrial  Policy  After  the  War.  A  similar 
attitude  prevails  in  Italy  "  and  Japan.^^ 

"  Commerce  Reports,  May  14,  1918. 
"  Commerce  Reports,  July  25,  1918. 
°  Corriere  della  Serra,  July  16,  1918. 
'*Nichi  Nichi,  Oct.  22,  1917. 


CHAPTER  II 

GENERAL  PROBLEMS  OF  RECON- 
STRUCTION ABROAD 

THE  FUNDAMENTAL  PROBLEM  AND  THE  VARYING  EMPHASIS 

Fundamentally  and  everywhere  the  problem  of  reconstruction 
is  of  course  to  make  good  the  stupendous  wastes  and  inconceivable 
ravages  of  the  war.  For  this  purpose  production  must  be  in- 
creased and  consumption  deceased,  so  as  progressively  to  augment 
the  social  surplus.  The  reconstruction  policies  must  therefore 
be  (i)  to  increase  the  output  of  raw  materials,  or  to  insure  their 
unrestricted  importation,  (2)  to  mobilize  labor  promptly  for 
peaceful  occupations,  (3)  to  increase  the  facilities  for  shipping, 
(4)  to  reorganize  the  finances,  and  (5)  to  restrict  the  manufacture 
and  consumption  of  luxuries  or  non-essentials. 

The  individual  problems  of  reconstruction  will  be  treated 
later  in  greater  detail,  but  their  high  lights  are  presented  here 
as  they  appear  to  the  native  Frenchman,  Englishman,  or  German. 
By  selecting  the  problems  these  men  emphasize,  we  can  appreci- 
ate their  relative  importance  to  those  who  are  best  capable  of 
judging  them.  In  considering  them  the  reader  should  of  course 
discount  the  error  of  the  observer  and  in  some  respects  the  in- 
sufficiency of  the  data  available.  The  aims  and  methods  of  re- 
construction in  the  different  countries  show  also  the  weak  points 
in  their  national  economic  life  in  its  pre-war  and  present  state. 

France,  for  instance,  specifically  looks  forward  to  a  more  in- 
tense industrialization,  a  more  extended  use  of  automatic  ma- 
chinery, standardized  production  on  a  large  scale,  and  the  na- 
tional transfer  of  effort  away  from  the  industries  that  cater  to 
luxury,  for  which  the  demand  apparently  will  be  much  diminished. 
The  development  of  the  natural  resources  of  France,  especially  of 
water  power,  is  very  strongly  stressed,  as  is  also  the  need  for 
some  international  credit  arrangement,  at  least  between  the  Al- 

14 


GENERAL  PROBLEMS  OF  RECONSTRUCTION      15 

lied  powers,  for  the  aid  of  France,  who  has  borne  the  brunt  of 

the  struggle  for  democracy. 

Germany,  on  the  other  hand,  finds  her  one  great  fear,  the  un- 
derlying motif  of  all  her  plans  for  reconstruction,  in  the  lack  of 
raw  material,  the  basis  of  her  extended  manufacturing  activities. 
Of  great  importance  also  is  the  scarcity  of  tonnage,  the  loss  of 
foreign  commerce,  the  huge  debt,  and  the  badly  deranged  foreign 
exchange  situation. 

To  England  the  great  need  for  reconstruction  is  not  a  material 
one,  but,  shall  we  say,  spiritual.  English  economists  are  unani- 
mous in  their  appeal  for  a  national  reawakening,  for  greater 
energy  and  more  industry,  and  for  a  spirit  of  cooperation.  The 
war  has  revealed  how  fatal  to  the  Empire  was  the  policy  of  the 
restriction  of  output  by  labor  and  the  selfishness  of  capital.  The 
two  directions  in  which  it  is  hoped  that  the  new  spirit  will  find  its 
greatest  effect  are  ( i )  in  the  solution  of  the  labor  problem,  which 
hangs  like  a  cloud  over  English  industrial  life,  and  (2)  in  the 
extension  of  technical  and  scientific  research,  the  absence  of 
which  seems,  in  the  minds  of  the  English,  to  be  the  cause  of  their 
confessed  decline  in  power  for  the  past  thirty  years,  as  compared 
with  the  other  leading  nations  of  the  world. 

GERMANY  ^ 

General  Aspects.  There  seems  to  be  in  Germany  a  curious 
failure  to  realize  the  fact  that  the  whole  question  of  transition 

*  Dr.  Kurt  Singer,  Some  basic  questions  of  reconstruction:  Eu- 
ropdische  Staats  und  Wirtschafts  Zeitimg,  Oct.  29,  191 7.  German  for- 
eign trade  after  the  war :  Commerce  Reports,  Oct.  18,  1917.  An  eco- 
nomic program  for  Germany:  London  Economist,  Apr.  28,  1917.  The 
import  trade  in  Germany's  reconstruction  scheme :  Hamburgischer  Cor- 
respondent, Aug.  16,  1917.  George  Bernhard :  Pliitus.  Germany's  com- 
mercial policy  after  the  war:  Deutscher  Ausscnhandel,  June  20,  1917. 
Dr.  August  Miller,  Principles  of  German  reconstruction :  Socialistische 
Monatshefte,  Aug.  15,  1917.  Interview  with  Chancellor  Michaelis :  Vos- 
sische  Zcilung,  Sept.  8,  1917.  Max  Haller,  Industry  and  commerce  in 
Germany  during  the  transition  period  after  the  war:  Pliitus,  Mar.  28, 
1917.      Von    Berg,    Wirtschaft    Zeitung    dcr    Ccniralmdchte,    Aug.    3:, 

1917.  Arthur  Norden,  Reconstruction  work  in  Germany:  Berliner  Tage- 
blatt,  Oct.  28,  1916.  Arthur  Feiler,  Frankfurter  Zeitung,  May  6,  1918; 
June    (?),    1918.     Corrcspondencblatt    der    Gewerkschaften,    June    22, 

1918.  Internationale  Korrespondenz,  Oct.  20,  1917.  Norddeutsche 
Zeitung,  May  5,  1918.     Reichsanzeiger,  Feb.  11,  1918. 


1 6   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

economics  is  intimately  tied  up  with  the  great  political  questions. 
An  isolated  observer  ^  calls  attention  to  the  folly  of  preparing 
for  conditions  that  may  never  supervene.  Incidentally,  he  be- 
lieves that  an  economic  revolution  would  follow  the  war  that 
would  dwarf  the  world's  experience  after  the  Napoleonic  wars. 
Most  writers,^  however,  see  the  chief  difficulties  of  reconstruction 
in  the  fact  that  German  tonnage  and  credit  will  be  too  scarce  to 
permit  the  full  needs  of  Germany  in  food  and  raw  materials  to 
be  satisfied.  Further,  the  serious  loss  of  capital  and  the  possi- 
bility of  exclusion  in  world  trade  are  two  grave  dangers  of  the 
reconstruction  period. 

Official  Views.  The  following  opinions  were  expressed  at  the 
Imperial  Economic  Office  by  merchants,  bankers,  journalists,  and 
legislators,  who  were  called  together  to  advise  the  Government 
and  who  subsequently  issued  an  official  statement.  *  Rubber,  oil, 
seeds,  petroleum,  and  textiles  were  bady  needed  to  permit  re- 
sumption of  industries  dependent  upon  them.  It  will  be  neces- 
sary to  regulate  the  importation  and  distribution  of  raw  ma- 
terials. But  labor  and  trade  should  be  unhampered,  and  "com- 
pulsory syndication"  of  industries  should  be  abolished. 

In  view  of  the  fact  that  one-half  of  Germany's  pre-war  ton- 
nage was  lost  and  one-half  was  interned,  the  shortage  of  ton- 
nage was  acute.  Therefore,  it  was  recommended  that  imports 
be  restricted  to  essentials  and  rationed  upon  a  priority  scheme, 
that  German  tonnage  be  used  exclusively  in  German  trade,  and 
that  State  control  should  give  way  to  cooperative  direction  by 
ship-owners. 

Finally,  in  view  of  the  scarcity  of  credit,  it  was  recommended 
that  capital  and  credit  be  retained  in  Germany,  that  bills  of 
exchange  be  under  Government  control,  and  that  as  much  trad- 
ing as  possible  be  done  upon  foreign  credits. 

Demobilization.  The  question  of  demobilizing  the  army  with 
the  least  interference  to  industry  and  the  minimum  of  enforced 
idleness  of  labor  has  been  studied  very  thoroughly.    Instead  of 

*  Arthur  Feiler,  of  the  Frankfurter  Zeitung. 

*  Kurt  Singer,  Fundamental  Questions  of  Transition  Economy :  In- 
ternational Korrespondenz,  Oct.  20,  1917.  Arthur  Von  Norden,  Ber- 
liner Tageblatt,  Oct.  28,  1916. 

*  Norddeutsche  Zeitung,  May  5,  1918;  Frankfurter  Zeitung,  May  6, 
1918;  Reichsameiger,  Feb.  11,  1918. 


GENERAL  PROBLEMS  OF  RECONSTRUCTION   17 

demobilizing  soldiers  by  regiments,  by  geographic  location,  by 
age  classes,  or  by  branches  of  the  service,  it  has  been  proposed 
to  demobilize  them  according  to  their  vocation  in  civil  life  and 
only  as  fast  as  the  specific  industries  concerned  are  ready  to  re- 
ceive them.  The  scheme  for  the  compulsory  reemployment  of 
former  workers  has  not  been  received  favorably,  because  of  the 
change  in  the  basis  of  industry  since  August,  19 14,  and  of  the 
inevitable  displacement  of  the  present  employee,  whose  idleness 
would  be  as  serious  a  problem  to  the  nation  as  that  of  the  dis- 
charged soldier.    It  would  delay  but  not  meet  the  difficulty. 

Raw  Materials.  Germany,  says  Rathenau,  is  like  a  great 
storehouse  without  any  goods.  The  first  need  of  so  highly  in- 
dustrialized a  State  is  the  procuring  of  raw  materials,  without 
which  the  industrial  life  of  Germany  will  starve.  This  problem 
is  complicated  by  the  fact  that  although  Germany's  manufac- 
turers and  ultimately  its  exporters  depend  for  their  prosperity  on 
foreign  raw  materials,  yet  the  depreciated  foreign  exchange  rates 
make  it  impossible  to  permit  the  unrestricted  importation  of 
commodities,  at  least  during  the  interval  that  must  ensue  before 
the  finished  products  can  be  shipped  to  the  markets  and  balance 
the  imports  of  raw  materials.  The  importation  and  distribution 
of  raw  materials  will  be  supervised  as  it  was  during  the  war  by 
the  Raw  Materials  section  of  the  War  Office,  which  with  its  sub- 
committees not  only  restricted  consumption  but  increased  pro- 
duction, where  possible,  devised  substitutes,  requisitioned  house- 
hold goods,  and  looted  the  invaded  territories. 

The  dearth  of  raw  materials  is  indicated  in  the  proposal  of 
Prince  Loewenstein '  to  the  effect  that  Germany  should  demand 
as  an  indemnity  the  raw  materials  to  be  had  from  the  Allied  pos- 
sessions. "Even  if  peace  opens  every  market  in  the  world  to  us, 
it  would  not  prevent  the  wildest  competition  for  raw  material 
and  food  supplies.  Money  will  not  bring  in  the  goods,  for  will 
foreign  countries  accept  our  paper?  Besides,  tonnage  will  have 
almost  disappeared,  and  our  exchange  will  have  sunk  to  the  very 
lowest.  The  Central  Powers,  the  victors,  must  demand  a  por- 
tion of  the  war  indemnity  in  raw  material,  and  this  immediately, 
before  other  powers  have  been  supplied.  The  victors  must  be 
the  first  to  eat." 

Less  strident  in  tone  and  quite  un-Prussian  in  spirit  is  the 

'Journal  of  Commerce,  April  i,  1918. 


1 8   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

proposal  of  Dr.  Bernhard  Dernburg  that  the  League  of  Nations 
provide  a  pool  of  all  available  raw  materials  and  that  each  mem- 
ber be  supplied  according  to  its  needs. 

As  for  the  much  vaunted  "substitutes"  (Ersatzstoffen),  their 
value  was  psychological  rather  than  material.  Paper  clothes  may 
tickle  Teutonic  egotism,  but  they  won't  stand  the  wet.  Zinc  sub- 
stitutes for  copper  may  have  been  intended  to  impress  the  Al- 
lies, but  they  are  not  acid  resisting  or  weather  proof.  The 
Germans  took  to  substitutes  in  an  extremity.  They  will  joy- 
fully discard  them,  if  the  Allies  remove  restrictions  on  exports 
of  their  raw  materials. 

Restriction  of  Imports.  To  bring  the  mark  to  parity,  it  will 
be  necessary  to  restrict  imports.  Some  German  writers  fear  that 
legislation  to  this  effect  will  evoke  the  hostility  of  the  countries 
from  which  the  raw  materials  are  obtained.  An  alternative  sug- 
gestion is  that  there  be  a  continued  control  of  foreign  bills  and 
a  restriction  of  imports  by  the  refusal  to  sell  foreign  exchange 
for  specific  import  transactions.  Imports  might  also  be  restricted 
by  the  establishment  of  a  central  purchasing  agency,  under  the 
control  of  the  Government,  according  to  a  plan  advocated  by  So- 
cialists and  officials,  or  by  means  of  a  cooperative  buying  syndi- 
cate, in  which  merchants  will  voluntarily  associate  themselves. 
Aside  from  all  these  schemes,  there  is  the  unanimous  determina- 
tion to  prohibit  the  importation  of  luxuries  and  to  encourage  as 
far  as  possible  the  use  of  substitutes  of  domestic  origin.  Obvi- 
ously, substitution  can  hardly  apply  in  any  large  degree  to  basic 
raw  materials. 

Efficiency  and  Thrift.  It  is  realized  by  German  economists 
that  the  only  way  to  increase  wealth  is  to  work  more  and  waste 
less — to  increase  production  and  to  decrease  consumption.  There 
are  schemes  afoot  for  industrial  conscription  of  all  men  physically 
able  to  work  and  unfit  for  any  intellectual  task.  The  idlers  will 
have  to  seek  some  other  clime.  Conversely,  there  will  be  a  re- 
duction in  the  use  of  luxuries,  beer,  wines,  tobacco,  and  a  cur- 
tailment of  the  esthetic  in  life  by  means  of  heavy  taxation  on 
works  of  art,  etc. 

Tonnage.  A  people  whose  ships  at  one  time  freely  sailed  every 
sea  unrestricted  by  the  other  nations  of  the  earth  will  be  re- 
duced to  the  need  of  manipulating  its  dwindled  fleet  to  accom- 
modate even  the  scanty  trade  which  will  remain  for  the  period 


GENERAL  PROBLEMS  OF  RECONSTRUCTION      19 

immediately  following  the  war.  The  schemes  proposed  include 
putting  all  tonnage  under  Government  control  and  rationing  it 
as  the  Allies  did  during  war  time,  and  limiting  the  importation 
of  non-essentials,  except  in  foreign  ships  and  by  means  of  foreign 
credit.  Another  plan  is  to  attract  foreign  tonnage  by  the  offer 
of  high  rates,  and  to  import  goods  in  foreign  bottoms  when  prac- 
ticable. This  plan,  however,  takes  no  account  of  legislation 
enacted  by  other  nations  to  counteract  the  diversion  of  their 
tonnage.  Nevertheless,  it  is  felt  that  owing  to  Germany's  inade- 
quate credit  facilities  and  low  purchasing  power  and  to  the  po- 
htical  hostility  against  her,  the  relation  of  supply  and  demand  in 
tonnage  will  be  in  equilibrium  long  before  some  of  the  other  fac- 
tors in  international  commerce. 

Trade  Policies.  Absurd  as  the  "Paris  resolutions"  seem  to  both 
Englishmen  and  Frenchmen,  ®  yet  these  measures  seem  to  have 
struck  terror  into  the  hearts  of  the  Germans.  They  greatly  fear 
economic  exclusion  and  a  loss  of  their  foreign  trade.  As  counter 
measures  they  expect  to  rely  more  on  home  production  than  they 
did  in  war  time,  and  to  utilize  as  means  of  reprisal  the  so-called 
compensation  products,  like  dyes,  chemicals,  electrical  goods, 
and  special  steels.  This  reed  to  beat  the  world  with  is  another 
example  of  the  German  inaptitude  at  understanding  the  non-Ger- 
man mind. 

Whether  or  not  any  legislative  boycott  is  enforced  against  their 
goods,  German  merchants  fear  the  deep  hostility  which  their 
barbarous  methods  of  warfare  have  roused  in  an  outraged  world. 
They  have  therefore  planned  to  utilize  their  friends  in  neutral 
countries  as  agents  and  to  remove  German  identification  marks. 
"No  moral  scruples  should  deter  us,"  says  one  typical  writer.  In 
general,  a  high  bargaining  tariff  with  accessory  export  bounties 
seems  to  be  a  popular  and  much  advocated  trade  policy  in  Ger- 
many. '' 

The  Financial  Situation.  Although  Germany  has  borrowed 
less  abroad  than  the  Allies  have,  yet  the  credits  she  has  raised 
in  Switzerland,  Holland,  and  the  Scandinavian  countries  are  not 

*  W.  H.  Dawson,  Germany's  Foreign  Trade :  Quarterly  Revieiv,  Janu- 
ary, 1918.    Charles  H.  Gide,  British  Economic  Journal,  December,  1916. 

'  It  is  worthy  of  note  that  Switzerland  has  under  consideration  a  law 
to  compel  all  Swiss  traders  in  foreign  goods  to  stamp  their  shipments 
with  the  name  of  the  country  of  origin. 


20      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

inconsiderable.  Besides,  the  circulation  of  German  paper  in  the 
invaded  territories  constitutes  an  obligation  that  must  be  re- 
tired, as  much  as  any  debt,  even  though  it  bears  no  interest.  To 
recoup  the  enormous  losses  of  the  war,  it  will  be  necessary  to  in- 
crease the  capital  available  for  home  industries,  Germans  ex- 
pect to  accomplish  this  object  by  encouraging  the  listing  of  their 
securities  in  those  foreign  countries  that  are  impressed  by  Ger- 
man commercial  power,  and  so  to  bring  outside  capital  into  Ger- 
many. Depreciated  exchange  will  make  German  securities  at- 
tractive abroad.  On  the  other  hand,  she  will,  at  least  for  a  short 
period  after  the  war,  impose  hindrances  to  the  floating  of  foreign 
securities  in  Germany,  so  as  to  avoid  draining  her  meager  and 
indispensable  supply  of  capital.  The  low  purchasing  power 
of  the  mark  will  naturally  discourage  the  export  of  German  capi- 
|tal.  Reliance  is  placed  on  the  issuance  of  gold  loans  with  the 
various  neutrals  and  the  importation  of  gold  in  exchange  for 
German  manufactures.  Foreign  credits,  with  due  dates  so  dis- 
tributed as  not  to  depress  exchange  rates  cumulatively  and  sharply 
at  the  time  of  payment,  are  to  be  sold  to  neutrals  at  especially 
favorable  rates  owing  to  the  depreciation  of  the  mark.  Plans 
have  also  been  made  for  the  liquidating  of  the  war  loans  held  by 
industrial  companies  which  may  be  in  need  of  cash  to  resume 
operations. 

German  foreign  exchange  rates  were  greatly  depressed  during 
the  war  for  the  lack  of  sources  of  capital  upon  which  Germany 
[might  draw,  in  the  same  way  as  the  Allies  drew  upon  the  United 
States.  German  economists  look  for  a  continuation  of  depreciated 
exchange,  for  two  reasons — primarily  because  German  paper 
money  has  vastly  increased,  and  in  addition  because  holdings 
of  foreign  securities  have  been  wiped  out.  However,  they  hope 
for  some  scheme  of  cooperation  in  maintaining  exchange  near  par, 
such  as  was  adopted  by  English  and  American  bankers  during 
the  war.  Speculation  alone,  they  fear,  will  not  save  the  situa- 
tion. Still,  a  slow  improvement  is  expected,  especially  in  view  of 
the  fact  that  Germany,  having  raised  no  foreign  loans  during  the 
war,  will  have  no  maturing  charges,  either  interest  or  principal,  to 
depress  the  exchange  market,  such  as  the  Allies  will  have  to  con- 
tend with  for  the  first  few  years  after  the  war.  Germany  ex- 
pects to  export  concentrated  goods,  or  commodities  of  high  value, 
whose  cost  consists  largely  of  wages  to  labor  and  which  occupy 


GENERAL  PROBLEMS  OF  RECONSTRUCTION   21 

relatively  little  cargo  space,  like  dyes,  drugs,  delicate  instruments, 
and  scientific  goods.  Occasionally  it  will  be  necessary  to  ship 
gold  to  bolster  falling  exchange.  Some  economists  argue  against 
the  need  or  the  advisability  of  maintaining  a  fixed  ratio  of  gold 
to  deposits  or  note  issues.    They  characterize  it  as  arbitrary. 

State  Control.  On  all  sides  one  finds  the  increased  advocacy  of 
public  control  for  private  industries.  State  syndicalization  is 
favored  as  a  matter  not  of  choice  but  of  necessity,  as  a  result  of 
the  impoverishment  following  the  war — not  for  the  former  pur- 
pose of  achieving  an  equitable  distribution  of  wealth,  but  for 
restoring  an  exhausted  community.  According  to  the  plans  put 
forward  compulsory  combinations  will  constitute  the  basis  of 
German  industry.  These  plans  contemplate  the  control  of  raw 
materials,  the  coordination  of  factories  in  the  same  industry,  the 
elimination  of  the  middleman,  compulsory  arbitration,  the  aboli- 
tion of  trade-union  restrictions — indeed  a  continuation  of  all  the 
policies  that  were  adopted  under  the  stress  of  war  as  a  result  of 
shortages  of  labor  and  raw  materials  and  because  of  the  need  for 
high  efficiency.  Public  control  is  expected  to  bring  about  low 
prices  and  high  wages,  specialization  of  labor,  and  the  use  of 
modern  machinery. 

Public  Debt.  The  astounding  increase  in  the  public  debt  has 
called  forth  strong  and  radical  measures,  such  as  a  levy  on  capital, 
progressive  inheritance  taxes  increasing  at  a  very  high  rate  with 
the  amount  willed  and  with  the  distance  of  the  relation  of  the 
heir  to  the  testator,  widely  extended  taxes  on  consumption,  and 
a  tax  on  raw  materials  entering  manufacture,  so  as  to  compel  in- 
dustry to  be  economical  and  efficient. 

ENGLAND 

The  Relaxation  of  Effort  and  the  Decline  in  Power.  English- 
men, concerned  as  to  their  national  future,  are  indulging  in  re- 
criminations over  the  loss  of  prestige  in  commerce  and  industry 
that  was  increasingly  manifest  up  to  the  beginning  of  the  war.  A 
comparison  of  England  and  Germany  in  a  number  of  fields  of 
endeavor  tells  the  whole  story.  ^ 

Whereas  in  the  last  30  years  Germany  increased  her  wheat  pro- 

*  Gray  and  Turner,  "Eclipse  or  Empire."  Engineering  Magazine, 
London,  Dec.  28,  1917. 


2  2   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

ductlon  50  per  cent,  that  of  England  declined  20  per  cent.  The 
yield  per  acre  in  Germany  rose  40  per  cent  and  in  England 
remained  stationary.  According  to  Christopher  Addison,  Minis- 
ter of  Reconstruction,  ^  the  British  fanner  on  the  average  fed 
from  45  to  50  persons  per  100  acres  of  land,  whereas  the  Ger- 
man farmer  fed  from  70  to  75.  The  British  farmer  grew  15  tons 
of  corn  on  the  100  acres  and  the  German  farmer  7,7,  tons.  From 
the  same  area  the  British  farmer  produced  1 1  tons  of  potatoes  and 
the  German  farmer  55  tons.  The  British  farmer  produced  17^^ 
tons  of  milk  to  the  German  farmer's  28  tons,  and  yet  the  Brit- 
ish farmer  had  the  better  soil.  The  decay  of  agriculture  in  Eng- 
land in  the  same  period  is  manifest  in  the  33  1/3  per  cent  in- 
crease in  the  stock  of  cattle  raised  in  Germany  as  against  no  in- 
crease in  England.  From  1865  to  1913  the  production  of  iron 
rose  from  i  to  19  million  tons  in  Germany,  and  from  5  to  only 
10  million  tons  in  England.  The  exports  of  iron  and  steel  from 
1900  to  1914  rose  in  Germany  from  i  million  to  6  million  tons 
annually,  and  in  England  from  3  to  5  million  tons  (and  in  the 
United  States  from  practically  nothing  to  i}i  million  tons).  Im- 
ports for  the  20  years  ending  1906  increased  for  Germany  by 
$420,000,000  a  year,  and  for  England  by  about  $300,000,000. 

England  was  suffering  from  the  inertia  which  accompanies  suc- 
cess attained  with  no  great  effort.  British  industry  was  suffer- 
ing from  inferior  labor,  inferior  equipment,  inferior  leadership, 
and  inferior  organization.  Owing  to  lack  of  cooperation,  strikes 
wasted  100  million  working  days  in  ten  years.  The  opposition 
to  modem  machinery  and  the  "soldiering"  of  workmen  led  to  a 
tremendous  decrease  in  output.  A  German  handbook  of  the  iron 
and  steel  industry  ^'^  contains  this  statement: 

"The  British  iron  industry  should  be  a  warning  example  to  us 
Germans.  The  English  trade  unions,  with  their  short-sighted 
championship  of  labor,  with  their  notorious  policy  of  'ca-canny' 
(the  limitation  of  output),  and  with  their  hostility  to  technical 
improvements,  have  seriously  shaken  the  once  powerful  position 
of  the  British  iron  trade." 

The  blindness  of  British  labor  consisted  in  its  inability  to  see 

'  Consul  Franklin  D.  Hale,  Huddersfieldj  England,  in  Commerce  Re- 
ports, Nov.  16,  1917. 

"  "Gemeinf assliche  Darstellung  des  Eisenhuettenwesens,"  Duessel- 
dorf,  1912. 


I 


GENERAL  PROBLEI^IS  OF  RECONSTRUCTION     23 

that  the  increase  of  output  lowers  costs,  increases  work,  and 
makes  for  general  prosperity,  and  that  the  restriction  of  output 
constitutes  a  loss  of  wealth  to  the  Nation  and  drives  industries  to 
other  countries  where  workmen  can  cooperate  with  the  manufac- 
turer in  reducing  unit  costs  and  where  individual  selfishness  is  not 
permitted  to  override  the  national  welfare.  However,  the  folly 
of  labor  was  matched  easily  by  the  bigotry  of  capital  and  the  in- 
difference of  the  Government.  Inadequate  housing  facilities  be- 
fore the  war  constituted  the  besetting  sin  of  English  manufac- 
turers and  a  condemning  testimony  of  the  neglect  of  the  Gov- 
ernment. However,  the  war  has,  by  aggravating  the  evils, 
hastened  their  solution.  The  formation,  upon  the  recommenda- 
tion of  the  Whitley  Committee  on  the  Relations  of  Employer  and 
Employed,  of  joint  standing  councils  representing  all  the  workers 
and  all  the  employers  in  an  industry  is  one  of  the  inestimable 
results  of  the  war.    This  subject  will  be  discussed  fully  later. 

The  British  Problem  as  Seen  from  Within.  "It  is  important 
that  the  public  shall  recognize  that  the  problem  of  reconstruction 
does  not  concern  this  country  alone  but  is  international  in  its 
scope  and  that  our  own  domestic  reconstruction  plans  are  cer- 
tain to  be  very  materially  affected  in  one  way  or  another  by  the 
decisions  of  the  peace  conference.  The  best  that  can  be  done 
at  present  in  the  circumstances  is  to  be  prepared  with  alternative 
plans."  " 

Addressing  the  textile  workers  at  Huddersfield,  England,  as 
part  of  the  plan  of  discussing  reconstruction  problems  in  the  vari- 
ous industrial  centers.  Dr.  Christopher  Addison,  Minister  of  Re- 
construction, outlined  as  follows  the  four  chief  needs  to  be  met 
after  the  war:  ^^ 

"The  war  has  taught  and  is  teaching  a  great  many  lessons:  it 
has  removed  some  of  our  narrowness  of  vision;  it  has  made  us 
realize  that  a  good  many  of  our  class  prejudices  are  wholly  arti- 
ficial and  harmful.  The  country  will  never  overcome  the  devasta- 
tion of  this  war  unless  as  a  nation  it  increases  its  productivity. 

"To  overcome  the  results  of  the  war  we  need  four  things — 
(a)  better  cooperation  between  capital  and  labor;  (b)  better  con- 
ditions of  life;  (c)  better  training;  and  (d)  better  industrial 
methods.    No  real  progress  can  be  made  in  increasing  output  until 

"Addison,  op.  cit. 

"Commerce  Reports,  Nov.  16,  1917. 


24      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

in  some  way  capital  and  labor  can  get  together  without  bitterness 
and  suspicion  for  the  settlement  of  their  differences. 

"Increased  output  calls  for  labor's  cooperation.  Labor's  inter- 
est in  an  increased  output  must  be  secured.  Labor  must  under- 
stand that  it  is  for  its  best  interest  to  discourage  anything  that 
tends  to  limit  output;  and  in  the  increased  output  labor  must 
enjoy  its  legitimate  share  of  benefits.  Increased  output  cannot 
be  obtained  without  the  hearty  cooperation  of  labor,  and  that  can- 
not be  won  if  its  full  rights  are  not  respected. 

"It  is  often  the  fear  of  unemployment  that  makes  labor  hostile 
to  improved  methods.  We  can  never  expect  a  man  to  put  his 
heart  into  introducing  new  methods  that  may  turn  him  out  into 
the  streets. 

"There  must  also  be  improved  conditions  of  housing.  Nearly 
every  village  has  such  a  problem;  and  the  output  of  food  from 
the  land  is  intimately  associated  with  the  housing  problem.  Na- 
tional health  depends  largely  on  how  the  various  communities 
solve  the  housing  problem. 

"Hereafter  industrial  progress,  as  never  before,  will  demand 
a  closer  relation  between  the  factory  and  the  laboratory.  There 
are  too  few  well-trained  experts  in  the  country,  but  their  number 
is  going  to  be  increased  and  a  larger  compensation  paid.  The 
war  has  also  shown  very  clearly  that  this  country  has  never  made 
as  much  use  as  it  ought  to  have  made  of  brains;  and  that  a 
few  highly  trained  scientific  men  have  accomplished  much  in  sup>- 
plying  the  armies  and  making  them  efficient  and  successful.  We 
are  learning  that  it  pays  to  employ  brains,  and  pay  them  properly. 

"There  has  been  too  great  'stand-offishness'  between  the  busi- 
ness community  and  educational  authorities.  Science  must  be 
brought  more  and  more  into  the  industrial  life.  Certainly  there 
must  be  a  larger  conception  of  outlet.  Trade  must  become  better 
organized.  Germany  has  been  able  successfully  to  invade  the 
British  market  because  it  organized  its  buying  and  selling  on 
comprehensive  lines." 

If  manufacturers  and  traders  would  examine  their  plants  and 
processes  with  clear,  unbiased  vision,  they  would  find  much  that 
ought  to  be  scrapped.  In  order  to  increase  their  productive  power 
they  must  have  the  best  possible  plants  and  use  the  most  up-to- 
date  methods.    Inefficient  plants  and  inefficient  operation  must  be 


GENERAL  PROBLEMS  OF  RECONSTRUCTION   25 

discarded  if  the  costs  of  the  war  are  to  be  paid  by  means  of  a 
greatly  increased  productive  capacity. 

Demobilization.  The  problem  that  will  arise  when  millions 
of  discharged  soldiers  are  thrown  into  the  industrial  market  has 
been  studied,  as  has  also  that  involved  in  the  demobilization  of 
unskilled  workers  and  of  women  in  the  munition  factories.  For 
the  soldier  there  has  been  proposed  immediate  aid  in  the  form  of 
a  furlough  on  full  pay,  a  grant  of  money,  and  insurance  against 
unemployment  for  a  considerable  period.  The  question  arising 
in  connection  with  employment  exchanges  has  been  worked  out, 
and  a  national  inventory  of  available  jobs  and  of  industrial  under- 
takings was  planned. 

To  meet  the  increasing  number  of  urgent  problems  which  peace 
will  bring,  it  is  hoped  to  utilize  the  joint  standing  councils  of 
all  the  employers  and  all  the  workers  in  each  industry.  Pending 
the  ultimate  and  complete  establishment  of  the  joint  councils,  it 
has  been  arranged,  with  the  aid  of  the  employers  and  workers  and 
of  the  Ministry  of  Reconstruction,  the  Ministry  of  Labor,  and 
the  Board  of  Trade,  to  set  up  a  provisional  committee  in  each 
trade  to  advise  the  Government  as  to  the  views  and  the  needs 
of  that  trade  in  relation  to  the  many  labor,  industrial,  and  com- 
mercial problems  that  will  affect  it  during  reconstruction.  Finan- 
cial facilities  for  industries  that  are  to  be  reorganized  will  be 
extended  with  the  primary  object  in  view  of  the  utilization  of 
labor. 

Raw  Materials.  The  lack  of  raw  materials  is  not  so  great  a 
problem  in  England  as  in  Germany,  for  by  calling  on  her  colonies 
she  can  satisfy  most  of  her  needs.  However,  it  is  realized,  appar- 
ently, that  her  potential  resources  have  not  been  systematically 
or  fully  exploited.  For  this  purpose  an  Imperial  Commission 
was  appointed  to  study  the  resources  of  the  Empire,  make  an 
inventory  of  them,  and  report  on  their  development.  The  report 
of  this  Commission  states  that  England's  potential  colonial  wealth 
far  exceeds  that  of  the  United  States  and  advocates  the  imitation 
of  the  methods  which  have  developed  the  continental  United 
States  so  rapidly. 

Technical  Research.  The  divorce  of  science  and  industry  has 
been  recognized  as  one  of  the  fundamental  defects  of  English 
industrial  organization.  There  is  an  appalling  neglect  of  scien- 
tific education  in  the  public  schools,  and  the  scientists  at  univer- 


2  6   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

sities  have  no  connection  with  the  industrial  laboratories.  At- 
tempts are  being  made  to  broaden  the  scope  of  the  scientific 
courses,  and  to  tie  up  the  laboratory  and  the  factory  by  means 
of  industrial  fellowships  under  which  a  research  worker  in  science 
pursues  his  investigations  on  some  manufacturer's  problem.  A 
national  laboratory  has  also  been  one  of  the  schemes  under  dis- 
cussion. Englishmen  have  come  to  realize  the  vast  possibilities 
for  the  increase  of  production  that  lie  in  the  application  of 
science  to  industry. 

Recovery  of  Trading  Prestige.  Attention  has  been  turned  to 
the  instruments  for  the  conduct  of  foreign  trade.  A  complete 
report  on  the  reorganization  of  the  foreign  trade  service  has  been 
submitted  to  Parliament,  and  it  is  hoped  that  supervision  over 
international  commerce  will  be  brought  about  in  the  interests  of 
the  entire  Empire. 

Financial  Facilities  for  Foreign  Trade.  A  study  of  German 
methods  by  Englishmen  has  revealed  the  fact  that  it  was  the  long 
credits  which  the  Germans  extended  that  made  possible  their 
persistent  and  steady  increase  in  foreign  trade.  Strangely  enough, 
it  was  British  credit  which  the  Germans  used  to  accomplish  this 
end,  indorsing  their  customers'  papers  at  the  German  banks, 
which  in  turn  sold  these  bills  on  London.  It  required  the  disloca- 
tion of  trade  occasioned  by  the  war  to  expose  this  German  device 
to  the  English  bankers.  English  merchants  are  insisting  on  the 
need  for  long  credits,  and  to  attain  this  end  plans  have  been 
made  for  cooperation  in  overseas  trade  by  exporters  and  bankers. 
The  British  Trade  Bank,  patterned  apparently  after  the  Amer- 
ican International  Corporation,  was  launched  for  the  purpose  of 
financing  foreign  enterprises  that  involved  the  tying  up  of  credits 
for  a  protracted  period.  Its  functions  have  not  yet  become  defi- 
nite, but  there  is  a  great  likelihood  that  it  will  also  engage  in  the 
extension  of  short-term  commercial  credit,  as  it  is  empowered 
to  do  by  its  charter. 

FRANCE 

General  Aspects.  French  economists  recognize  the  nature  of 
the  fundamental  problem — the  need  to  make  good  the  wastes  of 
war.  They  are  therefore  calling  for  intensified  production  and 
for  economy  in  consumption.  Only  in  this  way  can  the  social 
surplus  be  built  up.    France  expects  to  reduce  her  activity  in  the 


GENERAL  PROBLEMS  OF  RECONSTRUCTION   27 

manufacture  and  sale  of  luxuries  and  to  engage  in  large-scale 
production  by  relying  on  standardization  of  patterns  and  on 
automatic  machinery.  To  build  up  her  supply  of  capital,  France 
expects  to  export  much  and  import  little.^^ 

The  Need  for  Study  of  the  After-War  Problems.  "Let  us  not 
be  surprised  by  the  peace,  as  we  were  by  the  war,"  say  French 
writers.^*  Regardless  of  how  the  war  should  end,  French  econo- 
mists insisted  on  considering  preparations  for  the  solution  of  the 
after- war  problems.  The  country  is  exhausted  and  out  of  equilib- 
rium with  the  economic  forces  that  are  operative  in  peace  times. 
Therefore  it  needs  some  temporary  artificial  support  until  the 
period  of  recuperation  is  over.  Some  writers  point  to  the  prepara- 
tions made  in  other  countries.  "Our  competitors  of  to-morrow, 
whether  they  be  allies,  neutrals,  or  enemies  to-day,  are  all  busy 
studying  problems  of  the  after-war  period.  It  would  be  well  for 
us  to  be  familiar  with  their  preparations  in  order  to  decide  upon 
the  line  of  conduct  which  we  shall  have  to  follow."  ^^'  "There  is 
no  problem  more  urgent  than  to  rally  our  citizens  around  a  pro- 
gram which  will  be  able  to  meet  the  extraordinary  situation  which 
we  shall  have  to  face  after  the  war."  ^® 

An  Appeal  to  the  Nation.  On  all  sides  one  finds  both  in  the 
periodicals  and  in  the  literature  on  the  subject  warm  appeals  to 
the  nation  to  rouse  itself  from  its  lethargy  and  to  be  true  to  its 
best  traits.  The  history  of  "la  grande  France"  is  recalled,  and  the 
successes  of  competing  nations  are  held  up  to  view.  "France, 
formerly  first  among  the  nations,  now  is  third  or  fourth  indus- 
trially and  is  rapidly  sliding  backward.  It  is  time  to  realize 
the  fact  that  even  with  a  sweeping  victory  we  are  lost  as  a  people 
if  we  do  not  make  the  effort  to  raise  ourselves  industrially  to  the 
level  of  the  German.  German  barbarity  should  not  blind  us  to 
the  fact  that  Germany  represents  a  higher  state  of  economic  de- 
velopment. She  is  so  far  ahead  of  us  that  whether  we  wish  or 
not  we  must  follow  her  methods."  ^^ 

"  Louis  de  Launay,  Problemes  economiques  d'apres  guerre :  Revue 
des  Deux  Mondes,  July  i,  1918. 

"  Henri  Urban,  "L'efFort  de  demain."    Louis  de  Launay,  op.  cit. 

"  Berrogain,  "L'expansion  du  commerce  extericur  et  I'organization 
bancaire,"  Paris,  Delagrave,  1916. 

"Lysis  [pseud.  Eugene  le  Tailleur],  "Vers  la  democratic  nouvelle," 
Paris,  1916. 

"  Lysis,  "Pour  renaitre,"  and  "Vers  la  democratic  nouvelle." 


28      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

For  her  success  Germany  has  relied  on  orienting  the  national 
effort  in  specific  directions,  on  ardor  of  work,  on  widespread  teach- 
ing of  theory  and  technique  in  a  variety  of  fields,  on  the  applica- 
tion of  science  to  the  arts  and  to  industry,  on  the  abolition  of 
empirical  methods,  on  arrangement  of  machinery  and  methods  to 
insure  maximum  output,  on  the  production  of  new  commodities, 
and  on  the  solution  of  social  questions.^^ 

As  a  call  for  the  rebirth  of  the  Nation  and  for  a  radical  change 
in  the  basic  conceptions  of  the  French  mind,  the  French  economist 
presents  statistical  evidence  of  the  progress  made  in  Germany 
and  the  simultaneous  decline  in  France.  In  1875  Germany  and 
France,  with  areas  approximately  alike  (541,000  square  kilometers 
in  Germany  and  536,000  square  kilometers  in  France),  had  popu- 
lations of  42,000,000  and  37,000,000,  respectively.  By  19 10  Ger- 
many had  increased  her  population  to  65,000,000,  an  increase  of 
52  per  cent,  while  France  barely  attained  39,000,000,  an  increase 
of  8  per  cent.  In  spite  of  a  stretch  of  seacoast  which  should  enable 
France  to  become  a  maritime  nation  par  excellence  she  had  in 
1909  a  merchant  marine  of  1,300,000  tons,  as  compared  with 
Germany's  2,800,000  tons;  or,  to  count  only  steamships  with  a 
capacity  of  over  100  tons,  there  were  801,000  tons  in  France,  as 
against  2,350,000  tons  in  Germany.  Of  about  49,000,000  tons  of 
shipping  cleared  in  French  ports  during  the  year  1909  foreign 
bottoms  represented  36,000,000  tons.  The  figures  of  foreign  com- 
merce tell  the  same  story.  In  1891  the  sum  of  the  imports  and 
exports  of  Germany  amounted  to  9,160,000,000  francs;  those  of 
France  amounted  to  8,340,000,000  francs.  Twenty  years  later,  in 
191 1,  these  figures  grew  to  22,000,000,000  and  14,000,000,000 
francs,  respectively.  While  Germany  was  opening  her  mines, 
coal  and  metal,  and  developing  new  industries,  chemical,  elec- 
trical, and  metallurgical,  France  seemed  impotent  and  apparently 
was  decaying  industrially.^^ 

"Germany  would  never  have  dared  to  attack  us  so  foully  if 
we  had  not  permitted  the  balance  of  odds  to  run  so  strongly  in 
her  favor.  Our  lack  of  will  power,  our  neglect  of  our  most  ele- 
mentary duties  as  a  Nation,  created  the  illusion  that  we  were  a 
degenerate  people,  whose  role  was  passed,"  ^° 

"  V.  Cambon,  "Notre  avenir,"  Paris,  Payot  et  Cie.,  1916. 
"  Lysis,  "Pour  renaitre." 
^  Idem,  p.  14, 


GENERAL  PROBLEMS  OF  RECONSTRUCTION   29 

However,  the  great  awakening  seems  to  be  at  hand.  As  one 
French  deputy  writes,  "The  great  agricultural  Nation  can  become 
the  equally  great  commercial  and  industrial  power.  Only  will  is 
needed,  a  spirit  of  daring  and  an  organization  of  industry.  It 
is  up  to  the  Government  to  arouse  the  masses,  to  dispel  the 
apathy  of  the  contented  ones,  to  initiate  a  national  effort  to  make 
France  economically  independent,  and  then  to  help  her  enter  the 
world's  markets."  ^^ 

Rehabilitation.  Of  the  problems  that  are  calling  for  immediate 
solution  the  physical  reconstruction  of  northern  France  looms 
large  above  the  others.  Committees  of  architects  have  planned 
for  a  new  and  a  greater  France.  With  the  aid  of  modem  methods, 
standardized  designs,  and  construction  organized  on  a  large  scale, 
a  France  purified  and  regenerated  will  arise  from  the  ashes  left 
by  barbarian  torches.  As  in  other  countries,  the  problems  of  the 
blind,  the  crippled,  and  the  invalid  soldier  have  been  thoroughly 
analyzed  and  are  well  on  the  way  to  solution.^^ 

Man  Power  and  Population.  Of  the  long-range  problems  that 
are  awaiting  solution  the  fundamental  one  is  the  question  of  popu- 
lation, which  in  many  sections  of  France  is  stationary  or  declining. 
According  to  Charles  Gide,  a  French  economist,  the  industrial 
and  political  future  of  France  depends  upon  the  successful  meet- 
ing of  this  issue.  It  will  be  necessary  to  devise  methods  for 
increasing  the  population,  for  the  removal  of  all  obstacles  to  the 
rearing  of  children,  and  for  the  promotion  of  social  hygiene.  Child 
welfare  and  education  will  have  to  be  considered.  Alcoholism  and 
tuberculosis,  the  two  most  sinister  enemi<!s  of  public  health  in 
France,  according  to  the  French  observers  themselves,  will  have 
to  be  resolutely  fought  and,  so  far  as  possible,  banished.  Many 
minor  hindrances  to  wholesome  family  life,  such  as  low  salaries, 
high  rents,  difficulties  involved  in  the  term  "high  cost  of  living," 
and  exposure  of  women  to  excessively  hard  work,  are  being  con- 
sidered as  part  of  an  attempt  to  encourage  the  rearing  of  large 
families.  Unless  this  problem  is  adequately  met,  Frenchmen  are 
agreed  that  all  other  problems,  industrial,  commercial,  and  finan- 
cial, must  fail  of  solution.    However,  France,  aroused  and  reso- 

"  Victor  Boret,  "Le  bataille  economique  de  demain,"  p.  188. 
** Gilbert    Chinard,    The   reconstruction    of    France    after    the   war: 
University  of  California  Chronicle,  July,  1917. 


30      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

lute,  will  undoubtedly  solve  this  problem  as  she  has  successfully 
met  the  equally  threatening  challenge  of  war. 

Labor  ProblemsP  The  relation  of  labor  and  capital  touches 
every  aspect  of  the  after-war  situation — political,  social,  and  in- 
dustrial. During  the  war  France  instituted  several  measures  which 
aimed  to  secure  industrial  peace  and  continuity  of  production. 
Chief  among  these  were  the  official  recognition  of  labor  groups 
and  the  adoption  of  the  principle  that  the  workers  should  be  rep- 
resented in  the  solution  of  all  questions  in  the  factory  that  con- 
cerned their  welfare.  Conservatives  are  loath  to  grant  any  further 
concessions,  as  they  can  see  nothing  but  continuous  pressure  by  la- 
bor and  ultimate  surrender  by  capital.  The  liberals,  on  the  other 
hand,  realize  that  labor's  aspirations  are  inevitable  and  that  it  is 
wiser  to  yield  privileges  before  they  are  wrested  by  force.  The 
practical  thinkers  realize,  however,  that  it  may  be  impossible  to 
maintain  the  concessions  granted  to  the  working  classes  during 
the  war,  because  the  false  economic  standards  of  war  time  will 
inevitably  be  discarded  and  competition,  both  domestic  and  for- 
eign, will  again  become  operative.  How  to  handle  the  two  out- 
standing developments  of  the  war  in  this  respect — considerably 
increased  wages  for  even  unskilled  labor  and  the  introduction  of 
quantity  production  by  automatic  machinery  of  standardized  de- 
signs— is  the  chief  problem  of  French  labor. 

Labor  demands  that  it  have  a  voice  in  industry.  This  condition 
has  been  realized  in  part  in  the  formation  of  works  committees 
(conseils  de  usine).  The  chief  function  of  these  bodies  is  to 
attain  greater  stability  of  labor  in  the  plant,  to  establish  direct 
contact  between  the  employer  and  the  employed,  to  avoid  labor 
crises  by  formulating  a  procedure  for  solving  difficulties  as  they 
arise,  to  replace  the  strike  by  the  arbitration  conference,  and 
finally,  of  most  importance,  to  permit  the  workers  to  take  part 
in  those  decisions  which  affect  conditions  in  the  industry. 

As  in  other  countries,  there  are  labor  groups  that  insist  not 
only  on  a  voice  in  the  management  but  also  in  a  share  of  the 
profits — indeed,  as  in  England,  there  is  a  radical  element  which 
insists  on  the  immediate  expropriation  of  capital. 

Industrial  Reorganization.    Viewed  in  the  large,  the  solution  of 

"  Maurice  Alf  assa,  Le  preparation  de  I'apres  guerre :  La  Nouvelle 
Revue,  Nov.  15,  1917.  This  article,  "Le  production,"  is  one  of  a  series 
of  twelve  articles,  running  from  July  i,  1917,  to  January  i,  1918. 


GENERAL  PROBLEMS  OF  RECONSTRUCTION   31 

the  industrial  problem  consists  in  taking  a  census  of  the  country's 
resources,  developing  them  coordinately  (integrating  coal  mining 
with  the  manufacture  of  coal-tar  dyes  and  drugs,  for  example), 
diversifying  industry  so  as  to  make  France  independent,  and  in- 
troducing scientific  management  so  as  to  increase  output.  Under 
the  last  head  are  included  the  introduction  of  automatic  machin- 
ery, of  standardized  production,  and  of  industrial  research.-* 

France  aims  at  a  more  complete  industrialization.  Rather  than 
export  raw  materials  for  other  countries  to  work  up,  she  intends 
to  do  the  manufacturing  within  her  own  borders  and  export  the 
completely  manufactured  product.  The  tremendous  expansion  of 
industry  during  the  war  has  given  her  tools  and  machinery  and 
developed  an  army  of  trained  workers.  She  will  merely  have  to 
import  "peace"  tools  and  turn  out  "peace"  products,  such  as  elec- 
trical equipment,  textiles,  cloths,  gas  engines,  machinery,  and  chem- 
ical and  pharmaceutical  goods.  Just  as  the  Government  directed 
industry  into  the  production  of  munitions  for  the  war,  so  in  peace 
times  it  ought  to  redirect  industry  along  national  economic  lines. 

In  other  words,  France  will  have  to  aim  at  industrial  and  eco- 
nomic independence  of  her  present  enemies.  Her  dependence  has 
extended  not  only  to  the  original  machines  or  goods,  but  also  to 
supplies  and  replacement  parts.  Her  production  will  have  to  be 
diversified  so  as  to  include  everything  she  needs.  At  the  begin- 
ning of  the  war  France  was  dependent  on  Germany  for  her  war 
supplies,  as  nitric  acid,  for  certain  types  of  munitions,  for  dye- 
stuffs  and  their  correlate,  explosives.  The  dye  industry  in  turn 
controlled  the  paper,  leather,  and  textile  industries.  However,  the 
war  has  changed  all  this,  and  France  now  expects  to  be  free  from 
the  domination  of  the  foreigner  for  the  essentials  of  her  economic 
life.^'^ 

( I )  Resources.  It  is  not  coal  that  France  lacks,  but  only  Gov- 
ernment concessions  for  its  development.  In  a  chapter  entitled 
"To  progress  or  perish"  the  author  of  "Pour  renaitre"  contrasts 
the  number  of  new  mines  opened  in  the  last  decade  in  Germany 
and  France,  the  utilization  of  lignite  in  Germany  and  the  neglect 
of  it  in  France. 

All  writers  on  reconstruction  in  France  stress  the  power  re- 
sources of  the  country.    France  has  9,000,000  horsepower  in  her 

"Alfassa,  Chinard,  op.  cit. 

^Alfassa,  Urban,  Boret,  Heriot,  Lysis,  op.  cit. 


32      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

waterfalls,  as  compared  with  1,500,000  horsepower  in  Germany 
and  1,000,000  horsepower  in  Great  Britain.-*  Her  water  power 
can  furnish  the  equivalent  of  80,000,000  tons  of  coal,  or  20,000,- 
000  tons  in  excess  of  her  output  in  1913.  In  1902  only  200,000 
horsepower  was  developed,  and  in  1913  only  738,000  horsepower.^^ 
The  water-power  resources  are  of  great  industrial  significance, 
because  France  does  not  produce  enough  coal.  Before  the  war 
her  annual  output  was  40,000,000  to  42,000,000  tons,  whereas 
Germany  produced  about  200,000,000  tons  and  England  265,000,- 
000  tons.  The  annual  consumption  in  France  was  60,000,000  tons 
and  will  now  probably  rise  to  80,000,000  tons.  To  make  good  the 
shortage  she  will  either  have  to  import  coal  in  exchange  for  iron 
ore,  which  she  has  in  abundance,  or  else  exploit  her  hydro-electric 
power  in  the  regions  of  the  Alps  and  the  Pyrenees. 

With  her  abundant  waterfalls,  France  could  develop  electric 
light  and  power  for  use  in  the  home,  in  agriculture,  in  metallurgy, 
as  in  the  production  of  ferro-alloys,  abrasives,  and  aluminum, 
and  in  industrial  chemistry,  as  in  the  manufacture  of  nitrates  and 
fertilizers.  This  in  turn  would  permit  more  intensive  farming  and 
higher  yields  per  acre.  Indeed,  France  should  become  one  of  the 
leading  electro-chemical  and  electro-metallurgical  countries  of  the 
world.  Development  in  this  direction  will  necessarily  be  accom- 
panied by  the  growth  of  the  manufacture  of  electrical  goods,  as 
motors,  generators,  transformers,  and  measuring  instruments.  In 
this  field  Germany  was  supreme:  her  exports  of  electrical  supplies 
to  England,  Holland,  and  Belgium  constituted  a  large  percentage 
of  her  total  trade  with  these  powers.  If  France  utilizes  her 
natural  resources,  she  should  attain  an  important  place  in  this 
industry.2^ 

(2)  Scientific  Management.  "Method  in  industry  rather  than 
oratory  in  politics"  will  solve  the  French  industrial  problem.  The 
application  of  science  to  industry,  the  organization  of  veritable 
armies  of  scientific  workers  in  the  ranks — this  was  the  basis  of 
German  progress,  and  this  should  be  the  keynote  of  French  indus- 
trial policy.^^  The  shortage  of  labor  after  the  war  will  require 
the  use  of  automatic  machinery  and  the  instruction  of  the  laborer 

*' Lysis,  "Pour  renaitre,"  ch.  7,  "Notre  richesse." 
*'  Maurice  Alf  assa,  op.  cit. 
'^Journal  dcs  Debats,  Feb.  2,  1918. 
**  Lysis,  "Pour  renaitre,"  chs.  6,  8. 


GENERAL  PROBLEMS  OF  RECONSTRUCTION   33 

in  methods  of  work.^"  It  will  be  necessary  to  avoid  all  wastes 
of  matter  or  energy,  to  lay  out  plants,  buildings,  and  machinery 
so  as  to  eliminate  lost  motion,  to  use  mechanical  conveyors  and 
gravity  distributors  as  a  substitute  for  hand  labor,  to  install  de- 
vices for  mechanical  firing  and  complete  combustion.  Labor  will 
have  to  be  coordinated,  and  scientific  methods  will  have  to  be 
introduced  at  the  plant.  The  bewildering  variety  of  cars,  loco- 
motives, rails,  motors,  turbines,  even  of  structural  shapes  will 
have  to  be  reduced  to  a  standard.  America  has  taught  France 
a  valuable  lesson.  The  Taylor  system  must  be  introduced.  In- 
tensive production  lowers  costs.  These  elementary  notions,  famil- 
iar to  Americans,  are  new  concepts  for  the  French.^^  The  con- 
servatism of  capital  and  the  opposition  of  labor  will  have  to  be 
converted  to  mutual  aid  in  the  national  interest. 

Foreign  Trade.  The  foreign-trade  program  of  France  calls  for 
a  limitation  of  imports  and  a  stimulation  of  exports,  in  order  to 
prevent  a  too  unfavorable  balance  of  trade.  This  is  especially 
necessary  in  view  of  the  fact  that  even  before  the  war  France  had 
an  adverse  commodity  balance:  her  imports  exceeded  her  exports. 
Only  a  compensating  favorable  invisible  balance,  arising  out  of 
interest  on  foreign  investments  and  out  of  tourists'  traveling  ex- 
p)enditures,  prevented  the  franc  rate  of  exchange  from  falling 
before  the  war.  With  her  foreign  investments  reduced  and  huge 
foreign  debts  accumulated,  France  will  have  less  of  interest  credits 
and  more  of  interest  debits. 

Realizing  that  the  war  has  increased  the  economic  strength  and 
capacity  of  the  United  States  and  of  Great  Britain,  a  market  for 
whose  products  will  have  to  be  found,  France  expects  severe  com- 
petition, especially  in  neutral  markets.  The  Minister  of  Foreign 
Affairs  will  therefore  be  called  on  to  endeavor  to  create  new  mar- 
kets for  French  goods  by  encouraging  French  youths  to  emigrate, 
by  pursuing  researches  in  foreign  trade,  and  by  spreading  the 
French  influence  through  the  press,  chambers  of  commerce  abroad, 
and  the  achievements  of  the  schools  and  laboratories  at  home.'^ 

*"  Henri  Urban,  op.  cit. 

"  Louis  de  Launay,  Revue  des  Deux  Mondes,  July  i,  1918.  R.  de 
Fleury,  "La  production  industrielle  intensive;  son  influence  sur  le  prix 
de  revient,"  Paris,  Dunod  &  Pinant,  1918. 

"Alfassa,  op.  cit.,  July  i,  1917;  Biard  d'Aunet,  "Pour  remettre  de 
Tordre  dans  la  maison,"  Payot  et  Cie.,  1916. 


34      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

(i)  The  Economic  Boycott.  Paradoxical  as  it  may  seem, 
French  opinion  seems  to  be  strongly  opposed  to  the  "Paris  reso- 
lutions." Economists  do  not  deceive  themselves  into  believing 
that  an  economic  blockade,  difficult  to  maintain  even  in  times  of 
war,  is  possible  in  times  of  peace.  Further,  they  do  not  expect 
that  patriotism  will  move  consumers  to  buy  goods  at  high  prices 
of  their  present  allies,  if  goods  of  the  same  character  are  to  be 
had  more  cheaply  of  their  present  enemies.^^ 

In  fact.  Frenchmen  protest  vigorously  against  the  British  so- 
called  four-ply  tariff,  under  which  the  British  colonies  would  have 
preference  in  trade,  the  Allies  of  the  present  would  be  favored,  the 
neutrals  in  the  war  would  receive  no  special  consideration,  and 
the  present  enemies  would  be  discriminated  against.  France  is 
opposed  to  raising  the  cost  of  living  by  means  of  tariffs  on  neces- 
sities. However,  Frenchmen  are  equally  stout  in  refusing  to 
restore  the  old  economic  freedom  under  which  France  became 
dependent  on  other  powers.^* 

(2)  Difficulties  of  an  Economic  Alliance.  The  absurdity  of  a 
customs  union  limited  to  the  present  Allies  which  would  attempt 
to  satisfy  their  needs,  hitherto  supplied  freely  by  the  entire  world, 
is  exposed  in  a  French  analysis  of  the  difficulties,  both  economic 
and  political.  Fundamentally,  the  project  for  such  a  customs 
union  assumes  that  within  the  alliance  there  will  be  as  nice  a  bal- 
ance of  interests,  commercial  and  agricultural,  as  previously 
existed  among  all  the  nations  of  the  world.  Even  a  superficial 
view  will  expose  this  fallacy.  England,  a  manufacturing  country, 
gets  her  wheat  from  Canada  and  will  not  be  able  to  take  all  of 
Russia's  supply.  Similarly,  Canada  naturally  traded  very  exten- 
sively with  the  United  States.  Can  she  be  coerced  to  shift  this 
trade  to  the  mother  country?  Aside  from  the  difficulties  within 
the  Allied  group,  the  attitude  of  the  neutrals  must  be  considered. 
Even  if  it  is  assumed  that  these  preferences  and  special  alliances 
have  a  possibility  of  working,  will  not  the  neutral  sources  of 
supply,  forced  out  of  the  alliance,  turn  to  the  central  European 
group.  Their  trade  will  be  hampered  and  their  independence  cur- 
tailed. Morever,  political  dependence  within  the  group  would 
necessarily  follow  the  economic  dependence  artificially  fostered. 

In  addition  to  the  political  difficulties  outlined  above,  it  is  a 

^  Lysis,  "Vers  la  democratic  nouvelle." 

•*  Herriot,  "Agir,"  ch.  on  "L'entente  economique   des  Allies." 


GENERAL  PROBLEMS  OF  RECONSTRUCTION      35 

fundamental  economic  truth  that  the  balance  of  needs  and  satis- 
factions which  grew  out  of  a  world-wide  commerce  cannot  be 
struck  as  well  within  a  smaller  group  of  powers.  The  Central 
Powers  have  a  world  monopoly  of  some  commodities,  few  as  they 
may  be.  Further,  by  reason  of  industrial  skill  and  industrial 
traditions  they  have  produced  some  special  articles  of  high  quality 
at  very  low  cost.  Again,  the  lack  of  equilibrium  in  the  movement 
of  freights  will  impede  the  operation  of  any  customs  union  which 
is  less  wide  than  the  world  itself.  For  if  heavy  raw  materials 
should  move  one  way  only  and  cargoes  should  be  lacking  for  the 
return  voyage,  the  cost  of  transportation  and  therefore  of  manu- 
facture would  rise.  Finally,  the  purely  physical  aspect  of  an 
alliance  in  which  France  and  Russia  would  be  included  and  Ger- 
many excluded  presents  difficulties.  Freight  between  France 
and  Russia  would  either  go  overland  and  therefore  be  under  Ger- 
man control,  or  else  it  would  have  to  be  moved  by  artificial  and 
less  economical  routes,  as  by  the  Mediterranean  or  the  North 
Sea.3^ 

Banking.  The  duties  of  the  French  banks  as  the  French  bank- 
ers view  them  are  to  raise  the  moratorium,  to  repair  the  waste 
and  ravages  of  war,  to  readapt  Alsace-Lorraine  to  French  indus- 
trial life,  to  exploit  the  country's  resources,  as  water  power,  mines, 
and  agriculture,  to  finance  public  works,  and  to  extend  foreign 
trade.^*'  To  accomplish  these  and  other  financial  aims,  French 
economists  urge  a  study  of  the  German  methods  used  in  intensify- 
ing production,  in  extending  foreign  commerce,  and  in  organizing 
industrial  activity.  However,  they  ask  that  individual  initiative 
be  left  free  and  that  the  State  merely  stand  ready  to  aid  but  make 
no  attempt  to  replace  private  enterprise,  the  free  play  of  which 
will  be  so  necessary  to  restore  the  economic  life  of  France.^^ 

(i)  Domestic  Versus  Foreign  Investments.  For  years  before 
the  war  the  prevailing  doctrine  in  France  was  that  foreign  invest- 
ments constituted  a  reserve  fund  which  might  be  drawn  upon 
when  needed.  The  war  has  discredited  this  doctrine,  not  only  be- 
cause much  money  was  impounded  and  lost  in  enemy  countries, 
but  also  because  investments  in  neutral  countries  proved  to  be 
unsalable  in  a  crisis.     At  the  beginning  of  the  war  France  had 

**V.  Boret,  "La  bataille  economique  de  domain." 
*'Jean  Buffet,  in  a  pamphlet  on  the  subject. 
"Henri  Urban,  op.  cit. 


36      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

45,000,000,000  francs  invested  which  she  could  not  liqui- 
date. 

But  a  far  more  important  question  is  the  industrial  aspect  of 
foreign  investments.  A  country's  true  riches  consist  not  in  its 
foreign  investments  but  in  its  plants,  the  sources  of  its  produc- 
tion. A  hundred  francs  invested  abroad  may  yield  annually  five 
francs  in  interest,  A  hundred  francs  invested  in  France  will  not 
only  yield  interest,  it  will  pay  wages,  to  support  the  French  popu- 
lation, and  will  bring  a  profit  as  well.^^  As  Raymond  Poincare 
pointed  out  in  an  address  to  the  deputies,  France  invested  20,000,- 
000,000  francs  abroad  and  only  9,000,000,000  francs  at  home 
in  the  five-year  period  from  June,  1909,  to  June,  19 14.  To  use 
the  analogy  of  Lucien  Brocard,  France  is  like  a  business  man  who 
puts  his  capital  at  the  disposal  of  his  competitors  and  lets  his  own 
business  stagnate  for  lack  of  resources.  Again,  as  M.  Ribot  put 
it,  in  an  address  before  the  Chamber  on  May  17,  191 5,  ''A  great 
country  does  not  live  on  interest  and  dividends  from  foreign  secur- 
ities. It  lives  on  labor  and  on  industry.  To  use  the  extent  of 
foreign  investment  as  a  measure  of  a  country's  riches  is  deceptive. 
Not  an  abundance  of  capital,  which  it  can  export,  but  a  spirit 
of  enterprise,  which  develops  the  means  of  production,  is  the 
measure  of  a  country's  riches." 

Banks  should  not  be  permitted  to  seek  a  maximum  profit  with 
a  minimum  of  effort,  in  utter  disregard  of  the  national  senti- 
ments.^® In  a  memorandum  on  the  subject  the  Federation  of 
French  Industries  and  Trade  advocated  the  doctrine  that  inas- 
much as  France  will  need  to  resume  her  economic  life  speedily, 
she  should  take  measures  (a)  to  invest  French  capital  at  home, 
(b)  to  prevent  foreign  investors  from  getting  control  of  French 
industries,  and  yet  to  induce  foreign  capital  to  enter  the  country, 
and  (c)  to  restrict  the  outflow  of  French  capital  to  foreign  coun- 
tries." 

French  money  will  have  many  channels  of  investment  at  home. 
Shipbuilding,  the  extension  of  ports  and  canals,  the  utilization 
of  the  resources  of  the  country,  the  rebuilding  of  the  destroyed 
industries,  the  resumption  of  industrial  activity,  the  development 
of  the  newly  established  industries  which  are  freeing  France  from 

**  Herriot,  op.  cit.,  chs.  2  and  3. 

*•  Lysis,  "Agir,"  ch.  on  "Le  devoir  des  banques." 

**V.  Boret,  op.  cit.,  p.  157. 


GENERAL  PROBLEMS  OF  RECONSTRUCTION   37 

foreign  vassalage,  and  the  transformation  of  war  plants  to  peace 
uses  all  will  call  for  credit.  The  French  banker  has  hitherto 
been  too  conservative.  The  banks  were  chiefly  institutions  of 
deposit  and  were  so  restricted  in  their  scope  that,  while  German 
exports  more  than  quadrupled,  French  exports  hardly  doubled  in 
the  20  years  before  the  war. 

(2)  Banking  Facilities.  Various  means  have  been  advocated 
to  increase  domestic  investments.  Some  think  that  there  ought 
to  be  an  amalgamation  of  banks  throughout  the  country,  whose 
activities  should  have  the  moral  support  of  the  State.  Others 
think  that  the  problems  of  public  finance,  of  inflation,  of  foreign 
exchange,  and  of  the  debt  will  leave  the  Government  little  oppor- 
tunity to  do  what  a  union  of  banks  and  industrial  companies 
should  accomplish.  Still  others  would  create  a  new  great  bank 
which,  like  the  German  banks,  would  act  as  a  bond  between 
industry  and  finance  and  would  control  and  guarantee  the  activi- 
ties of  existing  French  banks.  Finally  comes  the  suggestion  of  the 
union  of  the  great  banks  of  the  Allied  coimtries  to  undertake  in 
common  the  work  of  erecting  a  new  international  financial  struc- 
ture. In  the  words  of  M.  Briand,  "We  need  a  new  union  based 
on  common  economic  interests  to  insure  the  intensive  develop- 
ment of  material  resources  and  the  exchange  of  the  products  of 
Allied  countries."  ^^ 

Public  Finance.  The  war  was  accompanied  by  a  tremendous 
destruction  of  wealth,  which  was  made  possible  by  the  sale  or 
pledge  of  investments  abroad  and  extensive  borrowing  in  foreign 
markets  of  the  money  needed  to  pay  for  an  enormous  excess  of 
imports  over  exports.  Purchasing  during  the  war  was  based  not 
on  economic  considerations,  but  on  military  necessity.  As  a  result 
the  belligerents  became  poor,  their  exchange  rates  depreciated,  and 
the  neutrals  grew  rich.  Inflation  of  currency  depressed  exchange 
still  further.  Any  single  nation  in  this  state  would  be  in  bad 
financial  shape,  but  as  most  of  the  great  nations,  the  belligerents, 
are  in  the  same  difficulty  their  status  is  not  much  altered  with 
respect  to  one  another.  If  the  Allies  pursue  a  wise  common  pol- 
icy, the  exchange  of  the  neutral  countries  will  fall  toward  normal, 
especially  as  the  purchases  of  neutral  goods  will  be  less  than  in 
war  time.    If  the  neutrals  should  buy  as  agents  of  the  Central 

**V.  Boret,  op.  cit.,  pp.  105,  113,  116,  119,  154,  157;  Lysis,  on.  cit.,  p. 
338. 


38   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

Powers  neutral  exchange  will  fall,  or  the  Allied  exchanges  will  rise 
more  rapidly.  Loans  from  neutrals  may  be  necessary  to  finance 
purchases  of  them  and  possibly  to  stabilize  exchange.  The  na- 
tional credit  may  have  to  be  maintained  by  mortgaging  the  coun- 
try. 

The  question  of  the  public  debt  and  of  taxation  will  assume 
varying  aspects,  according  as  prices  rise  or  fall.  If  they  rise 
higher  taxes  may  be  levied,  as  the  national  revenue  will  rise 
proportionately  with  the  rise  in  prices.  This  condition  will  be 
favorable  toward  paying  off  the  loans.  If,  however,  prices  fall, 
it  will  require  more  goods  and  services  to  repay  the  same  num- 
ber of  francs  than  were  received  by  the  State  during  war  time. 
The  annual  income  of  France  before  the  war  was  25,000,000,000 
to  30,000,000,000  francs;  the  budget  was  about  6,000,000,000 
francs,  calling  for  about  20  per  cent  in  taxes.  The  budget  has 
since  risen  to  15,000,000,000  francs  and  will  necessitate  an  in- 
crease of  taxes  to  50  or  60  per  cent.  Too  high  a  tax  may  dry 
up  the  sources  of  wealth  and  discourage  saving.  The  only  alter- 
native is  to  develop  the  national  resources  and  to  broaden  the 
bases  of  taxation  so  as  to  include  taxes  on  monopolies  and  on 
mining  or  industrial  exploitation.  It  may  even  be  necessary  to 
extend  the  war  measures  of  state  participation  in  private  profits. 
Taxes  on  war  profits  will  have  to  be  replaced  by  taxes  on  profits 
in  excess  of  a  certain  percentage  on  the  investment,  due  allow- 
ances being  made  for  extensions  and  betterments,  which  may 
become  the  source  of  taxable  revenue  in  the  future. 

Some  economists  fear  the  failure  of  old  methods  and  the 
danger  of  piecemeal  adjustments.  They  say  that  new  conditions 
call  for  new  solutions.  They  therefore  advocate  a  capital  levy, 
owing  to  the  disproportion  between  the  debt  and  the  national 
income.  It  is  of  course  not  intended  to  pay  off  the  debt  in  cur- 
rency. This  would  be  inadequate,  for  as  against  6,000,000,000 
to  7,000,000,000  francs  of  circulating  medium  the  national  debt 
is  over  100,000,000,000  francs.  There  are  many  other  difficul- 
ties in  the  way.  It  would  not  do  to  attempt  to  appraise  the 
national  wealth  tied  up  in  real  property  or  negotiable  instru- 
ments for  the  purpose  of  sale.  As  the  State  would  be  the  only 
buyer  and  there  would  be  many  sellers,  there  would  be  a  tre- 
mendous depreciation  of  values.  To  issue  currency  based  on 
mortgaged  assets  would  lead  to  the  inflation  that  Germany  expe- 


GENERAL  PROBLEMS  OF  RECONSTRUCTION   39 

rienced  as  a  result  of  her  Darlehnkassen,  to  say  nothing  of  the 
difficulty  of  retiring  the  circulation  thus  issued.  In  spite  of  the 
difficulties  serious  thought  is  being  given  to  the  subject.*^ 

State  Control.  France,  in  which  so  many  things  are  already 
controlled  directly  or  indirectly  by  the  State,  expects  an  exten- 
sion of  this  control.  As  the  State  for  purposes  of  taxation  will 
share  in  the  profits,  it  will  necessarily  have  to  foster  industry. 
It  should  coordinate  all  forces  to  one  end,  as  Germany  did,  by 
having  the  State  encourage  the  development  of  public  works,  of 
a  merchant  marine,  and  of  foreign  trade,  technical  education  and 
research,  and  the  control  of  capital  issues,  for  domestic  and  for- 
eign investment.  France  must  depart  from  the  policy  of  laisser 
faire.  The  State  should  direct  industry,  agriculture,  and  the 
development  of  the  resources  of  the  country,  so  as  to  aim  at  a 
large  degree  of  economic  self-sufficiency.*^ 

France  with  a  new  energy  and  with  resolute  spirit  will  be  able 
to  rise  from  the  ruins  of  war.  But  she  needs  knowledge  as  well  as 
will  power.  With  a  renaissance  in  education  and  with  a  dif- 
fusion of  technical  knowledge,  her  army  of  scientists  will  con- 
stitute a  skillful  hand  to  put  the  new  policies  into  effective  opera- 
tion. 

**  Maurice  Alfassa,  Problemes  de  finances  publiques  et  prives,  in  the 
series  La  preparation  de  I'apres  guerre:  La  Noitvelle  Revue,  Dec.  15, 
1917. 

"Lysis,  "Pour  renaitre,"  ch.  on  'Le  nouvel  etat." 


CHAPTER    III 

SOME  ASPECTS  OF  THE   LABOR  QUES- 
TION IN  GERMANY 

EFFECTS    OF    THE    WAR 

Industrial  Conscription.  As  in  England,  the  after-war  labor 
problem  in  Germany  is  twofold.  It  is  affected  by  the  transition 
from  war  to  peace — an  immediate  contingency.  Further,  it  will 
determine  the  reconstruction  policy — the  place  of  labor  in  the 
new  social  order.  Both  these  aspects  are  intimately  connected 
with  the  war-time  changes  in  labor  conditions,  as  well  as  with 
the  pre-war  status  of  the  German  laboring  class.  Two  of  the 
important  war-time  phenomena  were  compulsory  industrial  serv- 
ice and  the  extension  of  the  activities  of  women  in  industry. 

In  order  to  imderstand  the  German  proposals  for  industrial 
service  under  discipline  as  an  element  in  the  after-war  program, 
one  must  bear  in  mind  that  Germany's  National  Civilian  Service 
Law  went  into  effect  December  5,  1916.  Under  its  provisions 
every  male  German  between  the  ages  of  17  and  60  years  who 
had  not  been  called  up  for  service  with  the  armed  forces  was 
liable  for  national  civilian  service  during  the  war,  except  only 
those  employed  in  the  service  of  the  Government  or  of  a  public 
authority,  in  war  industry,  in  agriculture  or  forestry,  in  the  care 
of  the  sick,  in  war  organizations  of  any  kind,  or  in  concerns  which 
were  directly  or  indirectly  of  importance  for  the  prosecution  of 
the  war  or  for  the  supply  of  the  population  with  necessaries, 
in  so  far  as  the  number  of  persons  so  exempted  was  not  in  excess 
of  actual  requirements.  The  Reichstag  debate  on  this  bill  devel- 
oped its  underlying  principles.  Eveiy  man  must  work,  and  the 
State  shall  have  the  power  to  say  where  he  shall  work  without 
regard  to  any  consideration  but  that  of  the  public  good.  The 
State's  welfare  must  be  paramount,  but  all  possible  regard  is  to 
be  paid  to  the  convenience  of  the  workers.  The  administration 
of  the  law  must  rest  in  military  hands  to  secure  swiftness  of 

40 


THE  LABOR  QUESTION  IN  GERMANY  41 

enforcement;  but  proper  judicial  procedure,  in  which  employers 
and  employed  will  take  part,  will  temper  the  coercion  that  may 
occasionally  have  to  be  applied.  The  law  was  not  to  interfere 
with  the  right  of  labor  to  organize,  nor  would  the  workmen 
under  it  be  subject  to  military  discipline  unless  they  were  trans- 
ferred to  the  army.^  The  law  was  subsequently  made  more 
stringent,  requiring  all  persons  between  17  and  60  who  were  not 
in  the  army  or  navy  or  who  were  exempt  from  military  duty  to 
register  at  very  short  notice. 

Not  only  did  industrial  conscription  apply  to  adults,  but 
even  juveniles  were  drafted  for  agricultural  and  industrial  work.^ 
In  view  of  the  shortage  of  farm  labor  in  the  eastern  provinces, 
the  War  Economic  Bureau  sent  thither  great  numbers  of  youths 
from  the  western  districts.  Provisions  were  made  for  medical 
examination  of  the  boys  as  to  their  fitness  for  the  tasks  and 
relating  to  their  food,  surroundings,  and  health  during  their  work. 
Each  boy's  wages  was  7  marks  weekly,  of  which  1.50  marks  was 
paid  to  him  and  5.50  marks  was  sent  to  the  War  Economic 
Bureau.  The  employer  paid  expenses  of  transportation  both 
ways  and  likewise  provided  insurance  against  sickness  and  acci- 
dent. 

The  arrangement  put  into  effect  with  industrial  employers  was 
similar,  except  for  minor  changes  in  the  distribution  of  wages. 
The  guardians,  who  accompanied  the  boys,  were  paid  from  their 
wages  and  the  surplus  was  turned  over  to  the  National  War 
Relief  Fund. 

Women  in  Industry.  As  in  other  countries,  the  labor  problem 
in  Germany  is  complicated  by  the  fact  that  great  numbers  of 
women  have  been  drawn  into  industry  as  a  result  of  the  labor 
demand  during  the  war.  The  extent  of  this  movement  is  indi- 
cated in  the  fact  that  "during  the  second  quarter  of  1914  there 
were  7,265  women  employed  in  German  mines,  whereas  during 
the  fourth  quarter  of  1916  the  number  rose  to  37,563,  most  of 
whom  took  the  places  of  men  at  occupations  in  many  of  which 
men  alone  had  been  employed."  ^  Estimates  for  the  entire  nation 
show  that  whereas  in  1907  there  were  4,600,000  women  entirely 
dependent   (and  2,700,000  in  agriculture  partly  dependent)   on 

^  Board  of  Trade  Labor  Gazette,  February,  1917. 

*  Vossische  Zeitung,  Dec.  i,  1917.    Schlcsische  Zeitung,  Dec.  23,  1917. 

'  Bulletin  du  Ministere  du  Travail,  Paris,  April-May,  1917. 


42       LABOR  AND  RECONSTRUCTION  IN  EUROPE 

their  own  labor,  at  the  end  of  191 7  there  were  about  9,000,000 
women  so  employed.  The  figures  of  the  Sickness  Fund  of  the 
Imperial  Statistical  Bureau,  which  cover  70  to  75  per  cent  of 
the  total,  show  that  at  the  end  of  19 14  there  were  7,500,000  men 
and  4,250,000  women  included,  and  in  September,  19 17,  there 
were  5,167,000  men  and  5,500,000  women. 

A  German  document  of  August  11,  1917,*  reveals  violations 
of  the  labor  lav/,  in  which  women  worked  15  hours  daily  and  in 
some  few  cases  24  hours  at  a  stretch  and  in  which  night  work 
and  hard  labor  were  required  of  weak,  nervous,  and  pregnant 
women,  resulting  in  an  increase  in  tuberculosis,  a  laxity  in  family 
life,  and  a  decrease  in  births,  as  shown  in  the  following  sched- 
ules:'' 

Excess  of  births 
Living  births         Total  deaths  over  deaths 

1913    1,839,000  1,005,000  +834,000 

1914    1,820,000  1,236,000  +584,000 

1915    1,416,000  1,453,000  — 37,000 

1916    1,103,000  1,331,000  — 228,000 

More  recent  average  weekly  figures  for  a  typical  city  (Leip- 
zig) show  a  similar  striking  tendency: 

Excess  o£  births 
Living  births         Total  deaths  over  deaths 

1914    24.6  15.0  +9.6 

1917,  1st  quarter  ...   13.7  23.0  — 9.3 

1917,   April    12.1  21.9  — 9.8 

Note. — The  birth  statistics  of  the  Economist  are  corroborated  by 
Soziale  Praxis,  Oct.  18,  1917,  which  says,  "It  is  worthy  of  note  that  the 
maternity  funds  report  a  marked  decline  in  the  number  of  births  since 
1914.  In  many  districts  the  outlay  on  maternity  aid  diminished  by 
more  than  one-half  between  1915  and  1916." 

The  after-war  problem  of  women  in  industry  is  not  merely 
industrial  but  also  social.  No  doubt  after  the  war  some  women 
will  return  to  their  homes,  but  some  will  have  to  remain  to  fill 
the  gaps  in  industry  or  to  help  meet  the  increased  cost  of  living 
and  some  will  remain  because  of  the  satisfaction  they  found  in 
their  work.  The  seriousness  of  the  problem  is  fully  appreciated 
in  Germany.^ 

*  Europdische  Staats  und  Wirtschafts  Zeitung,  Dec.  i,  1917- 
'London  Economist,  June  9,  1917. 

'  E.  Francke,  The  German  woman  in  war-time  industry :  Europdische 
Staats  und  Wirtschafts  Zeitung,  Dec.  i,  1917- 


THE  LABOR  QUESTION  IN  GERMANY  43 


EMERGENCY    MEASURES — DEMOBILIZATION 

Number  of  Men  Involved.  The  largest  labor  question  of  im- 
mediate concern  after  the  war  is  the  problem  of  demobilizing  the 
army,  the  munitions  workers,  and  the  women  and  juveniles  in 
industry.  According  to  a  compilation  made  by  the  Havas  News 
Agency,^  Germany  had  a  total  of  5,500,000  men  at  the  front 
and  another  1,000,000  in  the  interior,  either  wounded,  guarding 
railroads,  or  engaged  in  other  military  duties.  Other  figures' 
show  a  mobilized  force  of  7,000,000  men,  and  a  third  compila- 
tion ^  credits  the  Germans  with  4,500,000  men  under  arms. 

Outline  of  Plans.  The  subject  has  been  discussed  extensively 
in  Germany.  One  writer  ^^  states  that  demobilization  will  have 
a  most  profound  effect  on  labor  and  industrial  conditions.  After 
no  previous  war  have  the  authorities  taken  into  account  the 
relation  of  demobilization  to  industrial  needs.  The  demobiliza- 
tion program  called  for  may  be  summed  up  as  follows:  ^^  It 
should  take  place  immediately  after  the  conclusion  of  peace  and 
should  provide  a  period  of  rest  and  recuperation  for  the  soldiers, 
insurance  for  the  unemployed,  reliable  employment  bureaus  for 
the  workers,  improvement  of  the  system  of  pensions  for  old  age 
and  sickness,  and  a  housing  scheme.  The  men  are  not  to  be 
demobilized  by  geographic  divisions,  by  regiments,  by  branches 
of  service,  or  by  age.  The  basic  principle  of  demobilization  is  to 
be  the  industrial  need.  This  is  true  not  only  in  Germany,  but 
also  in  Austria,  whose  war  minister  stated  ^^  that  arrangements 
would  be  made  to  release  first  of  all  a  moderate  number  of  spe- 
cially qualified  persons  for  the  restoration  of  business  activities, 
and  then  men  belonging  to  certain  callings,  such  as  transporta- 
tion, shipbuilding,  and  mining. 

Private  industry  might  find  itself  limited  in  its  labor  demands, 
but  the  needs  of  governmental  industries  would  be  great  and 
would  include  such  activities  as  the  repair  and  renewal  of  rail- 

'' Wall  Street  Journal,  Dec.  11,  1917. 
"New  York  Times,  Oct.  23,  1917. 

'  G.  Stanley  Sedgwick,  New  York  Times,  Dec.  27,  1917. 
"  Martin  Wagner,  Demobilization    and    reconstruction :  Europ'dische 
Staats  und  Wirtschafts  Zeitiing,  Dec.  15,  1917. 
"  Vossische  Zeitung,  Dec.  9,  191 7. 
"Berliner  Tagcblatt,  Dec.   12,  1917. 


44      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

way  tracks,  structures,  and  rolling  stock,  the  restoration  of  ruined 
places  at  home  and  in  the  colonies,  and  the  resumption  of  state 
and  imperial  industries.  The  need  for  recouping  the  exhausted 
supply  of  military  armaments  and  the  need  for  an  increased  pro- 
duction of  domestic  raw  materials  will  call  for  certain  classes 
of  labor  as  soon  as  peace  is  declared. 

Limitations  of  Method.  A  basic  factor  determining  the  rate 
and  order  of  demobilization  will  be  the  lack  of  raw  materials,  as  in 
the  textile  trades,  for  instance,  the  workmen  in  which  will  have 
to  remain  with  the  colors  until  this  lack  is  remedied.  In  much 
the  same  way,  the  lack  of  demand  in  some  trades  will  compel 
the  postponement  of  the  demobilization  of  the  groups  of  workers 
cormected  with  those  trades.  Finally,  inadequate  financial  facil- 
ities, the  lack  of  liquid  capital  in  industry,  as  well  as  the  scarcity 
of  credit  available  at  the  banks,  will  affect  the  rate  and  the 
order  of  demobilization. 

A  Unique  Program.  One  proposal "  calls  for  the  formation 
of  a  "producing  company,"  a  sort  of  industrial  army,  divided 
into  vocational  regiments  and  strengthened  by  a  suitable  dis- 
cipline, which  would  utilize  all  the  unemployed  demobilized  men. 
It  would  constitute  a  clearing  house  of  labor  for  the  building 
industries,  for  agriculture,  and  for  export  work.  In  other  words, 
demobilization  from  military  life  would  lead  to  economic  mobi- 
lization with  the  "producing  companies."  To  the  originator, 
the  adoption  of  this  compulsory  service  plan  after  the  war  seems 
justified  by  the  success  of  the  scheme  of  national  civilian  service 
during  the  war.  Although  it  might  entail  some  limitation  of 
freedom  and  pay  the  worker  a  low  salary,  yet  it  would  offer 
relief  from  unemployment  and  aid  in  the  reduction  of  the  na- 
tional debt.  More  practical  is  another  scheme,^*  which  calls  for 
a  very  gradual  demobilization  during  which  most  of  the  military 
units  would  continue  in  existence  until  industry  had  become 
strong  enough  to  find  employment  for  the  six  to  nine  million 
persons  in  excess  of  those  employed  to-day.  From  time  to  time 
only  so  many  men  would  be  discharged  as  could  be  absorbed  by 
private  business. 

Employment  Exchanges.    To  facilitate  the  absorption  of  work- 

"  Martin  Wagner,  Europdische  Stoats  und  JFirtschafts  Zeitung,  Dec. 

15.  1917. 
"  W.  Eggenschwyler,  Die  Bank,  September,  1917. 


THE  LABOR  QUESTION  IN  GERMANY  45 

ers  into  industry,  one  writer  ^^  demands  an  organization  of  em- 
ployment exchanges  so  that  every  town  having  a  population  of 
over  5,000  is  to  have  a  municipal  labor  exchange.  These  ex- 
changes are  to  be  grouped  by  industrial  districts  into  central 
offices,  over  which  in  turn  there  are  to  be  provincial  bureaus, 
and  the  system  is  to  be  capped  by  an  Imperial  Employment 
Exchange  attached  to  the  Ministry  of  the  Interior.  The  war 
relief  is  to  be  continued  throughout  the  transition  period  to  those 
who  have  been  impoverished  by  the  war.  Discharged  soldiers 
who  have  found  work  shall  not  be  dismissed  from  their  positions 
without  reasonable  cause,  and  transition  relief  shall  be  extended 
for  as  much  as  six  months,  if  the  raw  material  for  the  industry 
shall  not  have  become  available. 

It  is  suggested  ^^  that  disabled  officers  who  are  physically  and 
mentally  fit  to  teach  be  placed  in  the  trade  continuation  schools. 
Of  course,  the  candidates  must  have  had  experience  in  a  trade 
and  would  have  to  undergo  special  training  in  preparation  for 
teaching. 

Public  Works  and  Contracts^  Employment  agencies  must, 
however,  be  supplemented  by  provision  for  employment.  In 
previous  periods  of  unemployment  emergency  works  were  util- 
ized for  this  purpose,  and  in  the  fall  of  19 14  the  war  contracts 
accomplished  the  same  object.  In  the  transition  period  contracts 
on  public  works  must  take  the  place  of  Government  war  work 
in  order  to  hasten  production  and  to  prevent  the  unemployed 
from  becoming  dependent  on  poor  relief.  To  such  public  con- 
tracts and  undertakings  belong: 

(i)  The  immediate  requirements  of  the  Imperial,  State,  and 
municipal  administrations  in  the  following  respects : 

{a)  Construction  work,  above  and  below  ground,  streets,  roads, 
buildings  for  railways,  canals  and  harbors,  coast  construction,  and 
waterworks. 

(&)  Land  improvements — for  example,  irrigation  and  drainage 
of  fields,  cultivation  of  heaths  and  marshes,  afforestation. 

(c)  Railways — for  example,  rails,  engines,  cars,  fittings,  coal, 
oils,  and  lighting  systems. 

"Dr.  Blaum,  "Relief  During  the  Transition  Period,"  summarized  in 
Komnvunale  Praxis,  Sept.  i,  1917. 
"  Deutscher  Ililfsbund,  Oct.  7,  1917. 
"  Correspondcnzhlatt  der  Gewerkschaften,  June  8,  1918. 


46      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

(d)  Post,  telegraph,  and  telephone  services — for  example,  car- 
riages, leather  equipment,  apparatus,  lines. 

(e)  Shipping — for  example,  shipbuilding,  machinery,  fittings, 
coal,  oil,  and  ship  supplies. 

(/)  jNIilitary  and  naval  requirements — for  example,  fortified 
buildings,  barracks,  training  grounds  for  troops,  ships,  airships, 
guns,  arms,  equipment,  uniforms  and  victualing. 

(g)  Tramways — for  example,  buildings,  rails,  connections,  cars, 
equipment,  employees,  uniforms. 

(h)  Schools — for  example,  buildings,  fittings,  maps,  books, 
teachers'  requirements,  supplies. 

(t)  Infirmaries,  hospitals — for  example,  buildings,  fittings,  ap- 
paratus, medicaments,  clothes,  linen,   foods. 

(/)  Reformatories  and  prisons — for  example,  fittings,  uniforms, 
linen,  foods. 

(2)  The  authorities  are  to  draw  up  lists  of  articles  required  by 
individuals  and  to  encourage  their  production.  Among  such 
articles  are  the  following: 

(a)  Houses  and  homesteads  in  the  settlement  colonies. 

(b)  Furniture  and  household  untensils  for  those  starting  house- 
keeping. 

(c)  Clothing  and  footwear  for  those  in  need. 

(d)  Food. 

(3)  The  authorities  can  increase  opportunities  for  work  by 
extending  the  principle  of  cooperative  management — for  example, 
in  supplying  power  and  light,  in  supplying  foodstuffs  and  houses, 
and  in  cultivating  the  soil. 

(4)  Corporations  for  the  public  welfare — for  example,  sick 
benefit  offices,  cooperative  trade  societies,  insurance  companies, 
churches,  and  charitable  endowments — can  stimulate  industry  by 
their  demand  for  buildings  and  repairs. 

The  most  essential  thing  is  to  carry  on  first  those  occupations 
which  do  not  require  raw  materials — for  example,  mining,  culti- 
vation of  the  soil,  and  the  development  of  power.  They  may  be 
taken  in  hand  immediately  after  the  war.  All  the  labor  they 
require  may  be  allotted  to  them.  The  production  of  home  raw 
materials,  such  as  timber,  stone,  lime,  gravel,  slate,  clay,  and 
coal,  is  to  be  accelerated  as  far  as  possible  by  the  early  discharge 
from  the  army  of  the  necessary  business  managers  and  skilled 
workers.  Enterprises  that  require  little  material  and  much  labor 
should  be  first  resumed — for  example,  repairs  to  public  buildings, 
upkeep  of  railways  and  tramways,  reorganization  of  factories 


THE  LABOR  QUESTION  IN  GERMANY  47 

and  workshops,  reassembling  and  repairing  motors  and  working 
machinery,  remodeling  military  supplies  so  as  to  adapt  them  to 
the  requirements  of  peace. 

An  Official  Policy.  Not  only  have  unofficial  schemes  been 
aired,  but  delinite  official  action  was  taken  early  in  191 7.  The 
outline  of  a  report  of  the  Reichstag  Committee  of  Commerce 
and  Industry,^*^  based  on  the  proposals  of  its  subcommittee,  treats 
of  important  questions  affecting  labor  during  the  transition 
period. 

The  report  is  divided  into  three  parts — (i)  military  demo- 
bilization; (2)  the  placement  of  workers;  and  (3)  relief  for  the 
unemployed. 

The  Chancellor  is  invited: 

1.  To  arrange  that  after  demobilization  soldiers  be  not  re- 
tained in  the  service  against  their  will  beyond  the  time  demanded 
by  military  consideration. 

2.  After  demobilization,  to  apply  the  following  principles: 

(a)  Demobilization  should  be  so  regulated  as  to  release  im- 
mediately technical  men,  specialists  and  executives,  whose  pres- 
ence is  indispensable  for  the  resumption  of  normal  economic  life 
and  for  the  maintenance  of  the  activity  of  important  establish- 
ments. In  addition  preference  is  to  be  given  to  persons  trained  in 
industries  in  which  the  lack  of  manual  labor  is  particularly  felt. 
In  a  general  way,  it  is  advisable  to  avoid  all  delay  in  demobiliza- 
tion. Soldiers  should  not,  under  the  pretext  that  there  is  no  work, 
be  retained  in  mobilized  units  beyond  the  time  demanded  by  mili- 
tary considerations. 

(b)  Demobilized  men  should  be  returned  to  their  homes,  or  if 
they  have  obtained  work  to  the  place  of  employment. 

(c)  The  military  authorities  are  to  direct  them  to  employ- 
ment bureaus  and  to  make  available  facilities  for  communicating 
with  them. 

(<i)  The  demobilized  soldiers  will  for  one  month  continue  to 
receive  their  usual  pay,  in  order  to  get  a  fresh  start  and  to  put 
their  affairs  in  order. 

(e)  Soldiers  whose  health  is  seriously  affected  and  who  leave 
the  army  shall  receive  a  furlough  of  sufficient  length  to  recuperate. 
If  necessary,  they  shall  be  cared  for  at  a  sanitarium  at  the  expense 

"No.  87s,  dated  Jan.  24,  1917;  reprinted  in  Arbeistnachweis  in 
Deutschland,  June  20,  1917,  and  in  Bulletin  du  Ministcre  du  Travail 
et  de  la  Prevoyance  Socialc,  Paris,  August  and  September,  1917. 


48      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

of  the  Empire.  The  same  provision  applies  to  Germans  interned 
abroad  when  they  come  back. 

The  Chancellor  should  study  the  means  of  eliminating  unem- 
ployment, by  opening  new  bureaus  of  labor  exchange  and  an  Im- 
perial Employment  Office.  Soldiers  who  have  families  should  be 
given  employment  in  the  same  establishment  where  they  were  em- 
ployed one  year  before  the  war. 

The  proposals  include  the  continuation  of  allowances  to  sol- 
diers' families  and  the  employment  of  cripples.  During  the  period 
of  transition  unemployment  relief  shall  under  certain  conditions 
be  paid  out  of  the  funds  of  the  Empire  to  those  demobilized 
laborers  for  whom  it  is  impossible  to  find  suitable  work. 

According  to  instructions  furnished  by  the  Prussian  Ministry 
of  War,  the  Government  must  study  the  means  needed  to  prevent 
unemployment  before  demobilization  and  to  procure  new  manual 
labor  for  those  industries  which  are  most  necessary  for  industrial 
activity. 

The  return  of  an  army  to  normal  life  at  the  end  of  the  war  can 
take  place  only  gradually.  No  one  can  foresee  the  delays,  but 
the  disbanding  should  be  regulated  by  the  urgency  of  the  industrial 
need.  Soldiers  should  not  be  released  before  finding  work. 
Rather  should  they  remain  with  the  colors.  The  older  men 
should  precede  the  younger,  and  the  married  men  should  precede 
the  single. 

Those  trades  that  are  most  important  from  the  economic  point 
of  view  should  receive  first  attention.  Demobilization  should  be 
carried  out  in  the  following  order: 

(a)  Leaders  in  the  field  of  commerce,  industry,  shipping,  or 
general  economic  life. 

(b)  Directors  of  undertakings,  commercial,  industrial,  or  agri- 
cultural, and  their  employees,  and  engineers,  foremen,  and  super- 
intendents. 

(c)  Artisans  and  farmers,  working  for  themselves. 

(d)  Officials  of  the  state  or  city,  clergymen,  teachers,  employees 
of  railways  and  public  utilities. 

(e)  Seamen  and  fishermen. 

(/)     Skilled  workingmen,  if  they  have  immediate  employment. 

(g)  Unskilled  workers  in  all  industries  in  which  there  is  a 
pressing  demand,  as  in  the  mines,  on  farms,  in  shipping,  and  on 
docks  and  wharves. 

(h)     Students   and   those   preparing   for   a   profession. 

(i)     Germans  who  came  from  abroad  and  wish  to  return. 

It  was  felt  that  there  will  not  be  any  serious  unemployment 
after  the  war,  at  least  not  for  the  first  few  years.    On  the  con- 


i 


THE  LABOR  QUESTION  IN  GERMANY  49 

trary,  there  will  probably  be  a  shortage  of  help.  The  problems 
involved  in  the  redistribution  of  labor,  the  re-hiring  of  men,  and 
the  retiring  of  female  and  juvenile  labor  are  to  be  studied  by 
the  Ministry  of  Labor  and  by  interested  organizations,  like  cities, 
and  trade  unions. 

The  Committee  of  Commerce  and  Industry  of  the  Reichstag, 
in  the  session  of  May  lo,  191 7,  adopted  the  following  resolution: 

(1)  The  Chancellor  is  requested,  during  the  transition  period, 
to  put  into  effect  the  following: 

(a)  That  all  existing  employment  bureaus  and  new  ones  be 
opened  wherever  necessary. 

(b)  That  central  offices  be  organized  by  districts  so  as  to  bal- 
ance the  local  supply  of  and  the  demand  for  labor. 

(c)  That  the  National  Office  act  as  a  clearing  house  for  the 
various  local  offices. 

(d)  That  facilities  for  communication  be  opened,  by  mail, 
telegraph,  and  telephone ;  that  the  local  offices  have  the  privilege 
of  granting  free  transportation  to  soldiers  in  order  to  enable  them 
to  secure  the  right  job  before  actual  demobilization. 

(2)  The  Chancellor  is  requested  to  present  to  the  Reichstag,  as 
soon  as  possible,  a  plan  to  assure  the  regulation  of  employment, 
giving  representation  to  both  employers  and  employees  in  this 
task. 

Conclusion.  Germany  has  given  serious  thought  to  demo- 
bilization, although  her  problem  is  simpler  than  the  American 
or  French.  She  will  not  have  to  transport  her  army  across  the 
seas,  nor  will  she  have  the  devastations  of  frightfulness  to  repair. 
She  may  return  to  productive  industry  earliest  among  the  warring 
powers. 

DEMOBILIZATION    IN    AUSTRIA 

Considerations  and  Plans.  Austria  is  in  particular  concerned 
over  demobilization  and  its  problems,  for  the  "peace"  on  her 
east  illustrates  the  economic  disturbances  which  may  arise  from 
a  general  demobilization.  "A  necessar>^  preliminary  to  systematic 
demobilization  is  that  a  complete,  accurate,  and  up-to-date  reg- 
ister of  all  persons  connected  with  the  army  should  be  kept, 
arranged  according  to  their  civil  employment.  In  demobilization 
the  national  economic  interests  must  be  preferred  to  all  private 


50      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

interests.  The  immediate  labor  requirements  of  the  State,  prov- 
inces, and  communes  on  the  conclusion  of  peace  should  be  ascer- 
tained now,  and  arrangements  should  be  made  for  the  discharge 
of  men  connected  with  transport,  building,  and  similar  trades. 
Generally  speaking,  industries  engaged  in  producing  the  means 
of  production  should  have  precedence.  The  order  of  release 
from  the  army  should  be  decided  throughout  by  the  civil  employ- 
ment of  the  men.  Military  demobilization  should  be  synonymous 
with  economic  mobilization."  ^^ 

Official  Demobilization  Proposals.  A  report  was  made  by  the 
socio-political  subcommittee  on  the  demobilization  of  the  army 
personnel  of  the  main  Committee  on  War  and  Transition  Econ- 
omy in  Vienna.  The  subcommittee  submitted  the  following  prop- 
ositions: 

The  Committee  approves  the  plan  adopted  by  the  Ministry 
of  War  in  connection  with  demobilizing  the  army  personnel, 
which  is  to  be  carried  out  according  to  the  following  general 
principles: 

( 1 )  As  soon  as  the  order  is  proclaimed,  demobilization  shall  be 
actually  carried  into  effect  as  quickly  as  the  military  require- 
ments and  the  transportation  facilities  permit.  In  the  various 
military  branches  of  service,  demobilization  should  take  place 
in  accordance  with  the  annual  classes,  the  oldest  to  be  released 
first. 

(2)  In  order  to  insure  the  speediest  return  to  normal  adminis- 
trative and  industrial  conditions 

{a)  All  men  formerly  engaged  in  land  and  sea  transportation, 
shipbuilding  yards,  engine  and  wagon  works,  employment  organ- 
izations, and  mines,  so  far  as  they  have  not  already  been  returned 
to  their  work,  are  to  be  released  as  soon  as  the  demobilization 
order  is  issued. 

(6)  A  sufficient  number  of  specially  qualified  men  are  to  be 
released  promptly  in  connection  with  the  resumption  of  normal 
production.  These  men  are  to  be  chosen  by  a  commission  com- 
posed of  an  equal  number  of  representatives  of  employers  and 
employees,  in  the  various  branches  of  industry,  under  the  gen- 
eral management  of  a  similarly  constructed  Government  com- 
mission. 

"  Dr.  Krakauer,  "Die  Zeit,"  quoted  in  British  Board  of  Trade  Jour- 
nal, Apr.  18,  1918,  p.  484- 


THE  LABOR  QUESTION  IN  GERMANY  51 

(3)  All  members  of  t±ie  forces  who  at  the  time  of  demobiliza- 
tion are  not  able  to  find  employment  in  their  particular  craft  or 
calling,  after  having  made  application  at  an  employment  ex- 
change, should  be  allowed,  on  requesting  it,  to  remain  in  mili- 
tary service  for  three  months  at  the  utmost  after  the  release  of 
their  particular  age  group.  During  this  period  opportunity  is  to 
be  given  them  to  find  employment. 

To  facilitate  reemployment  Austria  has  already  taken  legis- 
lative steps.  An  Imperial  decree  of  Feb,  29,  1916,  provides  that 
any  commercial  employee  who  on  July  25,  19 14,  had  been  at  least 
one  month  in  a  position  and  during  that  period  had  been  called 
to  the  colors  has  a  legally  valid  claim  to  resume  that  position 
when  peace  is  declared.  The  only  establishments  that  are  re- 
lieved of  the  obligation  to  reinstate  their  former  employees  are 
those  which  after  July  25,  1914,  were,  owing  to  the  war,  com- 
pelled to  close  partly  or  entirely  and  are  still  unable  to  resume 
operations. 

Demobilization  of  Material.  Although  demobilization  of  army 
material  should  be  treated  under  another  heading,  it  is  consid- 
ered here  under  labor  as  part  of  the  general  scheme  of  demo- 
bilization. 

A  Central  Office  has  been  created  in  Austria  under  the  Min- 
istry of  Finance  to  catalog  and  husband  such  material  as  can 
be  dispensed  with  by  the  military  authorities.  Several  branch 
offices  will  be  established,  which  will  deal  with  the  sale  of  these 
effects  and  will  make  sure  that  their  full  value  is  realized  and 
that  no  persons  receive  preferential  treatment  in  the  disposal  of 
them. 

Two  organizations  have  been  created — the  joint  Austro-Hun- 
garian  Distribution  Commission,  which  divides  the  material  be- 
tween the  two  countries,  and  the  Hungarian  Inter-Ministerial 
Commission,  which  distributes  the  Hungarian  quotas  among  the 
various  branches  of  industry.  The  Hungarian  Minister  for  Transi- 
tion Economy  has  now  published  an  order  providing  for  the 
establishment  of  a  company  called  the  War  Material  Utilization 
Institute,  under  the  control  of  the  Government  and  the  Inter- 
Ministerial  Commission.  The  capital  is  to  be  10,000,000  kronen, 
and  dividends  are  to  be  limited  to  5  per  cent,  any  further  profits 


52      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

being    used    for    the    benefit    of    agriculture,    industry,    and 
trade.^" 

Comparison  of  German  and  Austrian  Demobilization  Plans. ^^ 
Both  German  and  Austrian  trade  unions  are  agreed  t'lat  after 
peace  is  concluded  no  worker  should  be  kept  in  the  army  longer 
than  is  absolutely  necessary  for  military  reasons;  but  in  regard 
to  the  exact  process  of  demobilization  they  differ.  The  Austrian 
trade  unions  demand  discharges  according  to  age,  preference  to 
be  given  only  exceptionally  to  specially  important  groups  of 
workers;  the  German  trade  unions  insist  that  the  first  considera- 
tion should  be  given  to  particular  callings  and  particular  groups 
of  workmen.  The  motive  that  weighs  with  the  Germans  is  the 
desire  to  bring  about  the  economic  revival  as  quickly  as  possible. 
With  regard  to  the  problem  of  work  for  the  discharged  soldiers, 
the  Social  Democratic  policy  is  not  to  keep  them  in  barracks 
till  they  have  found  some  means  of  supporting  themselves,  but 
to  enable  them  by  Government  assistance  to  resume  their  duties 
as  citizens.  The  ways  in  which  the  Government  can  assist  are 
by  cheapening  the  cost  of  living,  granting  wage  bonuses  or  fixing 
prices,  supporting  the  unemployed,  continuing  military  pay  for 
one  month  after  discharge,  granting  sick  leave  and,  where  neces- 
sary, expenses  of  a  stay  in  a  health  resort,  establishing  employ- 
ment offices  with  equal  representation  for  employers  and  em- 
ployed, granting  free  transportation  home  or  to  places  of  employ- 
ment away  from  home,  protecting  soldiers'  families  against  cred- 
itors by  extending  the  period  of  payment  and  prohibiting  the  too 
hasty  sale  of  pledges,  and,  lastly,  instituting  social  reforms  and 
making  provisions  for  adequate  housing. 

CONSTRUCTIVE    POLICIES 

The  Chambers  of  Labor  ^^ 

But  not  alone  have  the  immediate  after-war  problems  been 
discussed.     The  bases  of  permanent  industrial  p>eace  are  being 

"  Pester  Lloyd,  quoted  in  British  Board  of  Trade  Journal,  Apr.  i8, 
1918,  p.  484. 

^  See  an  article  by  Julius  Deutsch,  of  Vienna,  in  the  Austrian  labor 
periodical  Der  Kampf,  quoted  in  Bremer  Burger-Zeitung,  Nov.  16, 
1917. 

'^^  British  Board  of  Trade  Journal,  June  6,  1918,  p.  699.  Vorwaerts, 
Dec.  2,  1917.     Vossische  Zeitung,  passim. 


THE  LABOR  QUESTION  IN  GERMANY  53 

laid  in  the  formation  of  chambers  of  labor — organizations  of 
employers  and  employees — bodies  similar  to  the  Joint  Standing 
CouncfiS  in  England  and  unlike  anything  we  have  yet  developed 
in  the  United  States.  It  is  realized  in  Germany  as  well  as  in 
England  that  economic  reconstruction  is  impossible  if  friction 
between  capital  and  labor  is  neglected. 

(i)  Previous  Attempts  to  Establish  Chambers.  This  is  not 
the  first  time  that  chambers  of  labor  have  been  considered  in 
Germany  for  the  solution  of  labor  problems  and  the  prevention 
of  disputes.  They  were  demanded  by  Bebel  in  1877  in  a  bill 
which  he  presented  to  the  Reichstag.  In  1885  the  demand  was 
again  formulated  by  another  prominent  socialist;  and  since  that 
date  it  has  been  constantly  reiterated  in  the  program  of  the 
Social  Democratic  party.  In  1900,  1907,  and  1909  the  demand 
was  again  embodied  in  very  comprehensive  bills.  All  these  efforts 
were  defeated. 

(2)  Function  of  Works  Committees.  The  suggested  chambers 
of  labor  appear  to  have  many  points  in  common  with  the  works 
committees  which  have  existed  in  Germany  for  many  years.  Com- 
mittees composed  of  elected  representatives  of  the  workers  in 
industrial  establishments  were  in  existence  before  1891.  The 
Imperial  law  of  1908  amending  the  industrial  code  made  it  oblig- 
atory for  every  factory  or  works  employing  20  or  more  workers 
to  draw  up  a  code  of  factory  rules  and  made  such  rules  invalid 
unless  the  workers  of  the  establishment  had  been  given  an  oppor- 
tunity of  stating  their  views  upon  them.  The  committees  chosen 
by  the  workers  were,  in  practice,  workers'  welfare  committees. 

Under  the  Home  Workers'  Act  of  191 1  the  Bundesrat  author- 
ized the  establishment  of  trade  committees  in  certain  branches 
of  industry  and  in  certain  localities  where  home  workers  were 
employed.  The  functions  of  these  committees  were  to  report  to 
the  state  and  local  authorities  on  industrial  and  economic  condi- 
tions in  their  trade  and  district,  to  discuss  schemes  for  improving 
these  conditions,  to  cooperate  in  the  administration  of  such 
schemes,  and  to  collect  information  at  the  request  of  the  state 
and  local  authorities.  The  National  Civilian  Service  Act  of 
December,  19 16,  made  it  compulsory  for  all  industrial  concerns 
which  are  engaged  in  work  of  national  importance  and  in  which 
50  or  more  workpeople  are  employed  to  constitute  works  com- 
mittees and  maintain  them  permanently.     The  members  of  the 


54      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

committees  are  to  be  elected  by  the  workers  by  direct  and  secret 
ballot,  according  to  the  principle  of  proportional  representation. 

The  function  of  the  committees,  as  defined  by  the  act,  is  to 
promote  harmony  among  the  workers  themselves  and  between 
them  and  the  management.  It  is  specifically  the  duty  of  a  com- 
mittee "to  bring  to  the  knowledge  of  the  management  the  pro- 
posals, wishes,  and  grievances  of  the  workers  relating  to  the  con- 
duct of  the  business,  to  wages  and  other  labor  conditions,  and  to 
the  general  welfare  of  the  business  and  to  express  its  opinion 
thereon." 

However,  no  measure  of  autonomy  is  granted  tc  these  com- 
mittees. They  cannot  meet  otherwise  than  under  the  chairman- 
ship of  the  employer  or  his  representative.  The  employer  calls 
together  the  members  and  conducts  their  discussions,  although  he 
cannot  vote.  Preliminary  discussions  before  meetings  are  allowed 
in  the  absence  of  the  employer,  but  no  vote  can  be  taken  save  in 
his  presence. 

(3)  Chambers  of  Labor  Bill?^  The  bill  of  1910  provided  for 
the  creation  of  labor  boards  on  purely  occupational  lines.  In 
view,  however,  of  the  growth  of  trade  organizations  of  workmen 
and  of  the  general  recognition  accorded  to  them,  the  interest  in 
occupational  representation  of  the  workmen  has  greatly  dimin- 
ished, while  the  need  for  general  territorial  representation  of  the 
workmen  to  guarantee  and  safeguard  the  general  social  interests 
of  all  occupational  groups  has  become  more  urgent.  The  pro- 
posed labor  boards  to  represent  labor  interests  proper  became 
necessary  because  otherwise  the  workmen  would  be  at  a  disad- 
vantage as  compared  with  the  employers,  to  whom  legislation 
had  already  given  official  representation  in  the  form  of  cham- 
bers of  commerce,  chambers  of  handicrafts,  and  chambers  of 
agriculture.  The  experiments  attempted  during  the  war  have 
taught  the  workmen  that  this  task  of  maintaining  industrial 
peace  requires  legal  regulation  and  the  creation  of  official  insti- 
tutions. 

The  leading  provisions  of  the  Chambers  of  Labor  Bill  follow: 

Sec  I.  Chambers  of  labor  shall  be  set  up  on  a  vocational  basis 
for  the  employers  and  employed  in  any  branch  of  industry,  or  in 

^  Correspondetizblatt  der  General  Kommission  der  Gewerkschaften 
Deutschlands,  vol.  27,  No.  49,  Berlin,  Dec.  8,  1917, 


THE  LABOR  QUESTION  IN  GERMANY  55 

several  allied  branches  of  industry,  according  to  the  state  of 
development  in  the  industry.  The  chambers  of  labor  shall  have 
a  legal  status. 

Sec.  2.  It  shall  be  the  duty  of  the  chambers  of  labor  to  foster 
economic  peace.  Within  the  branches  of  industry  which  they 
represent  they  are  required  to  safeguard  the  industrial  and  eco- 
nomic interests  that  are  common  to  both  employers  and  employed, 
as  well  as  the  separate  interests  of  the  employers,  on  the  one 
hand,  and  the  employed,  on  the  other. 

Sec.  3.  The  special  functions  of  the  chambers  of  labor  shall 
be  as  follows: 

1.  To  promote  healthy  relations  between  employers  and  em- 
ployed and  to  foster  industrial  harmony. 

2.  To  assist  the  state  and  municipal  authorities  in  promoting 
the  interests  described  in  section  2  by  furnishing  those  authori- 
ties with  information  and  reports.  At  the  request  of  the  state 
and  municipal  authorities  and  of  the  Imperial  Statistical  Office, 
they  are  specially  required  to  lend  their  cooperation  and  to  furnish 
reports  whenever  investigations  are  being  made  into  the  in- 
dustrial and  economic  conditions  prevailing  in  the  industries  which 
they  represent. 

3.  To  discuss  demands  and  proposals  which  relate  to  em- 
ployers' or  employees'  industrial  interests. 

4.  To  initiate  measures  having  for  their  object  the  improve- 
ment of  the  economic  conditions  and  the  general  well-being  of 
workpeople,  especially  of  the  rising  generation. 

5.  To  cooperate  in  the  regulation  of  the  system  of  mercan- 
tile and  trade  apprenticeship  and  vocational  education  and  to 
cooperate  in  the  school  administration. 

6.  To  cooperate  in  the  formation  of  collective  labor  agree- 
ments. 

7.  To  create  trade  boards  for  the  home  industries  and  to  pro- 
mote their  activity  through  regulation  of  working  and  wage  con- 
ditions. 

8.  To  promote  the  establishment  of  public  employment  ex- 
changes. 

9.  To  cooperate  in  finding  employment  for  wounded  and  in- 
valid soldiers  and  for  others  out  of  employment  as  a  result  of 
the  war. 

Sec.  4.  The  chambers  of  labor  may,  in  reference  to  matters 
coming  within  their  province,  submit  proposals  to  officials,  repre- 
sentatives of  municipalities,  and  the  legislative  bodies  of  the  Fed- 
eral States  or  of  the  Empire. 

Sec.  10.    Every  chamber  of  labor  shall  have  a  chairman  and 


S6      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

at  least  one  vice-chairman,  besides  the  requisite  number  of  mem- 
bers. The  chairman  and  vice-chairman  shall  not  be  either  em- 
ployers or  workpeople.  They  shall  be  appointed  by  the  super- 
vising authorities  for  a  period  of  not  less  than  one  year  and  of 
not  more  than  six  years.  They  shall  be  eligible  for  reappoint- 
ment. 

Sec.  II.  The  members  of  the  chambers  of  labor  and  sub- 
chambers  shall  consist  half  of  employers  and  half  of  vi'orkpeople. 
The  deputies  for  the  employers  shall  be  appointed  by  the  vote 
of  the  employers,  and  those  for  the  workpeople  by  the  vote  of 
the  workpeople. 

Sec.  14.  Germans  of  both  sexes  who  (i)  have  completed  their 
2ist  year,  (2)  are  employed  in  the  district  covered  by  the  cham- 
ber of  labor,  and  (3)  belong  as  employers  or  employed  to  the 
branches  of  the  industry  for  which  the  chamber  of  labor  has 
been  established  are  entitled  to  vote  for  members  of  the  cham- 
bers of  labor. 

Sec.  18.  The  ballot  shall  be  direct  and  secret  and  shall  be 
carried  out  on  the  basis  of  proportional  representation,  so  that 
minorities  shall  be  represented  as  well  as  majorities,  in  propor- 
tion to  their  numbers. 

Sec.  42.  Each  chamber  of  labor  shall  establish  a  conciliation 
board  for  its  district.  The  chairman  of  the  chamber  of  labor  shall 
also  be  chairman  of  the  conciliation  board.  The  conciliation 
board  shall  have,  in  addition  to  the  chairman,  four  members  of  the 
chamber  of  labor  as  permanent  members,  of  whom  two  shall  be 
employers  and  two  workpeople. 

Sec.  45.  In  the  event  of  a  dispute  between  employers  and 
employed  in  any  branch  of  industry  represented  by  them,  concern- 
ing the  conditions  of  work  or  the  continuation  or  resumption 
thereof,  the  conciliation  boards  of  chambers  of  labor  may  be  con- 
voked, if  a  competent  industrial  court  does  not  exist  or  if  the 
workers  involved  fall  under  the  jurisdiction  of  several  industrial 
courts. 

Sec.  49.  The  chambers  of  labor  and  the  conciliation  boards 
and  adjustment  offices  subordinate  to  them  shall,  provided  the 
Federal  Council  does  not  decree  otherwise,  be  under  the  super- 
vision of  the  higher  administrative  authorities  in  the  districts 
in  which  they  are  situated. 

To  the  workmen's  divisions  within  the  labor  boards  are  as- 
signed the  following  duties: 


THE  LABOR  QUESTION  IN  GERMANY  57 

(i)  To  discuss  demands  and  proposals  of  the  workmen  and 
to  prepare  such  proposals  for  discussion  by  the  labor  board  or 
its  sections. 

(2)  To  make  investigations  when  required  as  to  the  amount 
of  wages  and  their  relation  to  the  cost  of  living  and  as  to  hours 
of  labor. 

(3)  To  render  independently  opinions  if  required  and  to  make 
proposals  to  authorities,  municipalities,  and  the  legislatures  of  the 
Federal  States  and  of  the  Empire. 

According  to  the  bill,  the  labor  boards  are  to  be  established 
on  a  territorial  and  not  on  a  vocational  basis;  but  they  are  to  con- 
tain vocational  sections,  among  which  are  sections  for  agri- 
culture and  forestry  and  for  technical  and  mercantile  salaried 
employees.  Government  and  municipal  works  are  included  in  the 
scheme. 

The  chambers  will  be  in  a  position  to  deal  with  all  questions 
affecting  labor.  Their  functions  will  not  be  restricted  to  wages 
alone,  but  they  will  cooperate  with  employers  within  their  ter- 
ritorial limits  in  the  task  of  increasing  output,  improving  the 
standard  of  work,  improving  the  conditions  of  housing  and  rais- 
ing the  standard  of  living  among  wage  earners,  suggesting  facil- 
ities for  better  education  of  the  workers,  and  promoting  general 
schemes  in  the  interest  of  both  labor  and  capital. 

August  Winnig,  a  trade-union  leader,  states  that  the  attention 
of  trade  unions  should  be  turned  to  the  question  of  the  profitable 
production  of  German  goods,  not  less  than  to  the  problem  of 
wages.  The  revival  of  keen  international  competition  will,  in 
his  opinion,  bring  German  industries  face  to  face  with  great 
difficulties,  which  can  be  surmounted  only  by  the  adoption  of 
more  scientific  methods  of  production.  Trade  unions  have  hith- 
erto viewed  such  efforts  with  considerable  suspicion  as  tending 
to  exploit  labor,  but  if  the  sound  principle  that  underlies  these 
methods — that  of  utilizing  more  completely  the  total  energy 
spent  by  labor — is  once  grasped,  no  objection  can  be  brought 
against  the  suggestion  from  the  point  of  view  of  the  laboring 
man.  The  thought  that  labor,  not  merely  as  a  wage-earning 
body  but  as  an  indispensable  part  of  the  whole  machinery  of 
production,  is  as  much  interested  in  the  prosperity  of  industrial 
undertakings  as  the  owners  and  ultimately  as  the  German  Na- 


58      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

tion  is  now  frequently  expressed  in  trade-union  and  socialistic 
organs. 

The  Rights  of  Labor  ^* 

The  German  trade  unions  advance  various  measures  to  recon- 
struct labor  relations.  The  unrestricted  right  to  organize  and 
to  combine,  unhampered  by  clauses  of  the  penal  code  or  by  the 
provisions  of  the  civil  law,  is  most  important  for  all  employees. 
For  that  reason  the  demand  for  complete  freedom  to  combine 
must  precede  all  other  demands.  The  right  to  organize  and 
strike  is  no  less  necessary  for  workers  in  public  undertakings 
than  for  those  in  private  employ  and  must  be  restricted  neither 
by  injunctions  nor  by  a  special  Government  workmen's  act.  The 
unrestricted  development  of  the  trade  unions  affords  a  guaranty 
of  sound  policies,  for  with  the  growth  of  their  organization  and 
resources  their  responsibility  increases. 

The  trade  unions  must  also  strive  to  obtain  legal  recognition 
for  wage-scale  agreements  concluded  between  them  and  the  em- 
ployers' organizations.  Although  legal  regulation  of  agreements 
is  still  a  matter  for  the  future,  clauses  in  an  agreement  assented 
to  by  both  workers  and  employers  should  be  regarded  as  a  part 
of  the  public  law  and  be  carried  out  under  the  protection  of  the 
legislature. 

Labor  Organization 

Labor  bureaus,  as  self-administrative  bodies  of  employers  and 
employees  with  equal  representation  and  nonpartisan  manage- 
ment, should  be  organized.  These  labor  bureaus  are  to  look 
after  the  administration  of  social  legislation,  especially  the  work- 
men's protective  laws  and  the  general  supervision  of  labor.  An 
Imperial  Labor  Bureau  as  a  central  office  for  administration 
would  secure  the  cooperation  in  social  policy  of  the  employees 
and  employers  by  means  of  the  chambers  of  labor.  In  this  way 
the  ablest  labor  leaders  could  be  enlisted  in  the  service  of  the 
state. 

Relief 

Employment  Agencies,  Public  Works,  Insurance.  The  need 
for  relief  of  unemployment  demands  the  creation  and  legislative 

"  Correspondenzblatt  der  Gewerkschaften  Deutschlands,  Berlin,  July 
6,  1918. 


THE  LABOR  QUESTION  IN  GERMANY  59 

regulation  of  a  chain  of  public  employment  bureaus  for  par- 
ticular trades.  In  these  bureaus  there  should  be  equal  repre- 
sentation of  employers  and  employees.  Unemployment  after 
the  war  must  be  combated  by  means  of  providing  labor  on 
public  works.  Those  who  are  not  earning  wages  must  receive 
ample  financial  assistance  from  the  Imperial  treasury,  by  means 
of  compulsory  legal  insurance  of  the  unemployed  and  the  invalid. 
Efforts  must  be  made  to  organize  all  branches  of  insurance  uni- 
formly on  the  basis  of  threefold  contributions,  (a)  by  the  insured 
persons,  (b)  hy  the  employers,  and  (c)  by  the  Imperial  author- 
ities. The  administration  should  be  carried  on  by  a  management 
composed  of  an  equal  number  of  representatives  of  employers 
and  employed.  Compulsory  insurance  must  be  extended  to  all 
cases  of  maternity  aid. 

Protective  Legislation 

Clauses  relating  to  the  protection  of  women  and  juvenile 
workers  and  to  Sunday  rest  and  other  provisions  for  the 
protection  of  workers  which  have  been  suspended  dur- 
ing the  war  must  be  put  into  force  again  fully  and  imme- 
diately. For  the  relief  of  unemployment  and  for  the  mainte- 
nance of  Germany's  national  strength,  night  and  Sunday  labor 
must  be  confined  to  works  that  never  close  and  only  in  order 
to  meet  the  requirements  of  the  national  welfare — for  example, 
the  provision  of  raw  materials  and  transportation.  For  similar 
reasons  attempts  must  be  made  to  reduce  the  working  day  of 
adult  workers  to  nine  hours  at  most,  and  to  eight  hours  for 
work  in  shifts.  Women  are  to  be  excused  from  work  on  Satur- 
day afternoons  so  that  they  may  be  able  to  look  after  their 
homes. 

International  Measures 

In  the  domain  of  international  social  legislation  efforts  must 
be  made,  by  means  of  treaties,  to  secure  workmen's  protection, 
insurance,  and  employment  agencies,  as  well  as  the  freedom  of 
domicile,  the  right  to  combine,  the  advantages  of  arbitration, 
and  the  legalization  of  wage-scale  agreements.  An  international 
labor  bureau  must  be  made  a  public  institution  of  all  the  partici- 
pating States,  and  a  federation  of  international  trade  unions 
should  be  represented  in  this  labor  bureau. 


6o      LABOR  AND  RECONSTRUCTION  IN  EUROPE 


Political  Demands 

The  prerequisite  to  the  success  of  the  social  policies  of  the 
trade  unions  is  the  existence  of  popular  legislative  bodies  in  the 
State,  based  upon  a  franchise  which  secures  to  the  poorest  as 
well  as  to  the  richest  an  equal  influence.  The  trade  unions  ex- 
press their  sympathy  with  the  efforts  to  introduce  general,  equal, 
secret,  and  direct  franchise  into  all  the  Federal  States.  The 
trade  unions  are  in  favor  of  women  being  allowed  to  vote  or 
be  elected  in  the  Empire,  State,  and  municipality.  Equal  rights 
should  be  given  to  women  workers  and  employees  in  all  matters 
of  labor  policy,  as  part  of  the  recognition  of  the  complete  equal- 
ity of  rights  of  the  working  classes  in  all  domains. 

labor's  programs  of  reconstruction 

The  long-range  reconstruction  program  of  labor  in  Germany  is 
not  only  concerned  with  matters  of  labor  and  social  legislation 
but  attempts  to  deal  with  the  whole  economic  situation.  In  its 
labor  aspects  it  reveals  a  record  of  progress  which  England  be- 
fore the  war  sought  to  follow  and  which  indicates  the  probable 
paths  of  American  labor  legislation. 

In  the  reconstruction  programs  German  liberal  sentiment  is 
peculiarly  in  accord  with  the  British  Labor  Party.  A  compara- 
tive study  will  also  throw  light  on  our  own  progressive  political 
platforms. 

Below  are  given  (i)  the  scheme  of  social  legislation  of  the 
Social  Democratic  party,  Oct.  lo,  191 7;  (ii)  the  reconstruction 
program  of  the  German  Trade  Unions,  Oct.  20,  191 7;  (iii)  the 
reconstruction  scheme  of  the  German  Social  Democratic  party, 
Oct.  14,  1917;  (iv)  a  working  program  of  the  German  Social 
Democratic  party,  June,  19 18. 

The  Scheme  of  Social  Legislation  of  the  Social  Democratic 

Party  " 

PROTECTION    OF    LABOR 

(i)  General. — Protection  of  workmen  is  to  be  extended  to  all 
persons  who  are  not  in  an  independent  position.     Greater  con- 

'^  Bremer  Burger  Zeitung,  Oct.  10,  1917. 


THE  LABOR  QUESTION  IN  GERMANY  6i 

trol  than  hitherto  is  to  be  exercised  in  carrying  this  out.  Works 
employing  five  or  more  workmen  who  do  not  speak  German  must 
call  special  attention  to  the  regulations. 

(2)  Protection  of  Health. — The  prohibition  of  the  preparation 
and  utilization  of  white  phosphorus  is  extended  to  the  prepara- 
tion and  employment  of  all  other  poisonous  substances  used  in 
industry  and  injurious  to  workmen  and  to  processes  producing 
this  effect.  Where,  in  view  of  technical  reasons,  such  a  pro- 
hibition seems  impracticable,  establishments  in  which,  owing  to 
their  system  of  working  or  to  the  nature  of  the  material  required 
for  the  work  or  resulting  from  the  manufacturing  process,  special 
danger  to  the  workmen  is  to  be  feared  are  to  be  subject  to  special 
'nspection  and  medical  control. 

Home  labor  is  to  be  prohibited  (o)  in  the  case  of  work  from 
which  grave  injuries  to  health,  such  as  poisoning,  might  ensue; 
(b)   in  the  production  of  foodstuffs. 

(3)  Daily  Working  Hours. — Daily  working  hours  for  male 
workers  over  18  may  not  exceed  eight  hours.  Occupations  which 
require  irregular  working  hours  are  to  be  subjected  to  special 
regulations. 

(4)  Night  Work. — Night  work  is  to  be  forbidden  except  in  con- 
cerns specially  designated  by  law,  where  it  is  necessary  owing  to 
the  nature  of  the  work  or  for  other  technical  reasons. 

(5)  Sunday  Rest. — Workmen  are  not  to  be  given  employment 
on  Sundays  or  holidays.  The  conditions  on  which  any  necessary 
exceptions  are  to  be  granted  are  to  be  settled  by  law.  Any  work 
permitted  on  Sundays  and  holidays  may  not  exceed  the  amount 
of  time  which  is  absolutely  necessary.  Workmen  employed  on 
Sundays  and  holidays  are  to  b^  allowed  the  prescribed  rest  on 
week  days. 

(6)  Protection  of  Female  Workers. — Working  hours  for 
women  may  not  exceed  eight  hours  daily  and  four  hours  on  Sat- 
urdays and  other  days  preceding  a  holiday.  They  may  not  be 
given  extra  work  to  take  home  after  working  hours.  The  em- 
ployment of  women  is  absolutely  prohibited  (a)  at  night;  (b)  on 
Sundays  and  holidays;  (c)  on  work  which  is  damaging  to  health 
or  constitutionally  unsuited  for  women;  (d)  for  six  weeks  before 
an  expected  confinement  and  for  26  weeks  after  the  same.  Dur- 
ing the  succeeding  26  weeks  employment  may  be  given  only  for 
a  period  of  four  hours  daily. 

Exceptions  to  clauses  a  and  b,  which  are  necessary  to  a  certain 
extent  for  nurses  for  women  patients  or  other  sick  persons,  are 
to  be  fixed  by  law.  Exceptions  to  regulation  d  may  be  allowed 
by  the  competent  factory  inspector   when  at  least   eight  weeks 


62       LABOR  AND  RECONSTRUCTION  IN  EUROPE 

have  elapsed  since  the  birth  of  a  child  and  when  its  death  is 
attested  by  a  declaration  from  the  registration  office  and  it  is 
proved  by  a  similar  document  that  no  objections  exist  on  the 
score  of  injury  to  the  mother's  health  by  the  premature  resump- 
tion of  work.  Permission  to  work  for  more  than  four  hours 
within  26  weeks  after  the  birth  is  to  be  given  only  when  it  is 
shown  that  the  child  is  dead  or  when  an  official  certificate  attests 
that  it  is  receiving  nursing  at  least  equivalent  in  value  to  nursing 
by  its  mother. 

(7)  Protection  of  Children  and  Juveniles. — The  employment  of 
children  under  15  is  to  be  prohibited.  For  juveniles,  aged  be- 
tween 15  and  18,  the  working  time  may  not  exceed  six  hours 
daily.  Juveniles  of  this  age  may  not  be  employed  (a)  at  night, 
(b)  on  Sundays  and  holidays,  (c)  on  occupations  dangerous  to 
health,  or  (d)  in  mines  underground.  The  continuation  schools 
provided  for  juveniles  may  be  held  only  between  8  a.  m.  and  6 
p.  m. 

(8)  Protection  of  Home  Workers. — For  persons  employed  at 
home  protection  is  to  be  afforded  on  the  principle  laid  down  at  the 
conference  of  home  workers  held  on  June  11,  1911. 

(9)  Industrial  Inspection. — For  the  effective  control  of  work- 
men's protection,  the  industrial  inspection  must  be  placed  on  a 
broader  basis.  The  officials  intrusted  with  it  must  be  drawn  from 
expert  circles,  due  regard  being  paid  to  the  employees  with  whom 
they  have  to  deal.  The  regulations  respecting  the  employment 
of  women  are  to  be  supervised  and  carried  out  by  women  in- 
spectors. 

Inspectors  are  to  be  made  independent  and  vested  with  execu- 
tive powers. 

The  services  of  the  trade  unions  are  to  be  enlisted  for  the 
effective  carrying  out  of  workmen's  protection. 

workmen's  insurance 

Insurance  legislation  is  to  be  subjected  to  drastic  reforms  and 
to  be  extended  in  all  its  branches  to  independent  people  of  small 
means.  The  aim  of  the  further  development  of  sickness  insur- 
ance should  be  the  creation  of  insurance  for  all  classes  who  need 
it.  The  introduction  of  compulsory  family  insurance  would  be 
a  step  toward  such  a  system  of  national  insurance.  The  income 
limit  for  liability  to  insurance,  which  has  hitherto  been  2,500 
marks,  must  be  raised  to  at  least  3,600  marks,  and  "sick  pay"  is  to 
be  fixed  at  a  minimum  of  60  per  cent  of  the  basic  wage  where 


THE  LABOR  QUESTION  IN  GERMANY  63 

such  wage  is  not  more  than  12  marks.  The  nursing  activities 
of  the  sick  benefit  associations  are  to  be  extended. 

Maternity  insurance,  like  sickness  insurance,  is  to  be  extended 
to  all  classes  with  small  means.  The  care  of  infants  is  to  be 
extended  so  as  to  include  that  of  little  children. 

Insurance  against  accidents  must  be  extended  to  all  branches 
of  industry,  to  the  public  service,  and  to  welfare  work,  as  must 
also  insurance  against  occupational  diseases  and  other  injuries 
incurred  in  trades. 

Insurance  of  invalids  and  dependents  is  to  be  further  developed. 

PUBLIC    HEALTH 

Public-health  regulations  are  to  be  developed  into  a  compre- 
hensive system  of  public  hygiene,  whose  lowest  administrative 
unit  should  be  a  municipal  health  or  welfare  office.  The  duties 
of  this  office  are  to  combat  all  influences  injurious  to  health,  to 
investigate  their  causes,  and  to  create  institutions  which  will  be 
devoted  to  hygiene  and  allied  social  activities.  It  is  to  be  the 
Central  Office  for  Public  Welfare. 

To  carry  out  the  aims  of  this  office  the  aid  of  representatives 
of  social  insurance  should  be  invoked. 

THE  RIGHT  TO   STRIKE 

The  right  to  strike  must  be  freed  from  all  restrictions.  It  is 
to  be  conceded  without  limitation  to  all  sections  of  the  population. 

REFORM    OF    THE    LABOR    LAW 

The  provisions  of  the  labor  law  must  be  regulated  by  legisla- 
tion so  as  to  safeguard  the  rights  of  the  individual  worker.  Any 
special  regulations  that  may  be  necessary  for  certain  groups  of 
workers  are  to  be  added  to  the  general  labor  law. 

Any  alterations  and  revisions  of  the  labor  law  brought  about 
by  special  agreements  must  be  put  on  a  legal  basis  by  the  creation 
of  a  special  labor  rate  law  (Arbeitstarifgesetz). 

REPRESENTATION    OF   WORKERS*    INTERESTS 

Workers'  committees  are  to  be  formed  in  all  establishments  em- 
ploying more  than  20  persons. 

The  representatives  of  trade  unions  in  the  labor  offices  of 
smaller  districts    (see   below)    are   to   form   a   special   body   for 


64      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

taking  up  all  questions  involving  the  interests  of  the  workers  in 
such  districts. 

For  the  districts  covered  by  a  higher  administrative  authority 
chambers  of  labor  (Arbeitskammern)   are  to  be  formed. 

ARBITRATION  OFFICES 

The  arbitration  system  must  be  extended.  The  local  arbitra- 
tion offices  must  be  supplemented  by  others  for  large  districts, 
and  finally  by  one  for  the  Empire.  Where  special  circumstances 
connected  with  a  trade  appear  to  demand  the  formation  of 
special  arbitration  offices — for  example,  in  mining — such  offices 
must  be  provided.  An  appeal  to  arbitration  offices  is  to  be  open  to 
either  party,  and  either  party  can  initiate  negotiations.  The 
decisions  of  the  arbitration  offices  have  generally  only  a  moral 
force,  but  during  the  transition  period  after  the  war  they  are  to 
be  compulsory. 

EMPLOYMENT   EXCHANGES   AND   CARE  OF   THE   UNEMPLOYED 

Employment  exchanges  are  to  be  standardized  for  the  whole 
Empire.  They  should  be  adapted  to  the  conditions  of  the  local 
labor  market.  The  local  exchanges  are  to  be  linked  up  with  the 
Labor  Office  to  be  formed  for  an  entire  district.  The  Labor 
Office  is  to  consist  in  equal  proportion  of  representatives  of 
workers  and  employers  presided  over  by  a  nonpartisan  chairman. 
These  labor  offices  are  to  be  linked  up  with  labor  offices  for  the 
larger  districts.  They  will  serve  for  adjusting  supply  and  de- 
mand. An  Imperial  Labor  Board  will  unite  and  control  the  dis- 
trict labor  offices. 

Until  an  Imperial  unemployment  insurance  system,  which  is 
to  be  created,  becomes  efifective,  municipal  unemployment  insur- 
ance subsidized  by  the  Imperial  Government  must  be  provided. 
The  assistance  extended  by  trade  unions  to  the  unemployed  must 
become  an  integral  part  of  insurance  by  the  State. 

POOR    LAW 

The  poor  law  must  be  recast  in  accordance  with  modern  views 
on  social  matters.     Its  degrading  effects  must  be  abolished. 

CARE    OF    JUVENILES 

The  measures  necessary  for  the  physical,  mental,  and  moral 
improvement  of  juveniles  must  be  incorporated  in  a  Juveniles  Act. 


THE  LABOR  QUESTION  IN  GERMANY  65 

Until  its  enactment  any  individual  provisions  of  a  law  for  juve- 
niles which  need  drastic  amendment  are  to  be  considered  at 
once.  For  example,  the  punishable  age  must  be  raised  to  16, 
and  the  age  of  protection  to  18,  and  proceedings  against  juveniles 
must  be  regulated  with  due  regard  to  conditional  postponement 
of  prosecution. 

HOUSING 

The  housing  question  must  be  settled  by  an  Imperial  Housing 
Act,  based  on  sound  social  considerations. 

IMPERIAL   OFFICE   FOR    SOCIAL   LEGISLATION 

For  accomplishing  the  tasks  connected  with  social  policy  and 
for  the  furtherance  of  measures  of  a  similar  character,  a  Min- 
istry for  Social  Legislation  should  be  created,  and  also  an  inde- 
pendent law  court  for  deciding  judicial  matters  connected  with 
social  legislation.  To  the  latter  must  also  be  referred  disputes 
with  regard  to  social  insurance. 

MEASURES    ON    BEHALF    OF    EX -SOLDIERS,    INCLUDING    THE    DISABLED 

So  far  as  the  interests  of  the  army  permit,  the  discharge  of 
those  called  to  arms  by  reason  of  the  war  must  take  place  with- 
out delay.  In  the  demobilization  regard  must  be  had  as  far  as 
possible  to  the  resumption  of  normal  economic  life,  but  the  over- 
crowding of  the  labor  market,  which  is  feared,  must  be  avoided. 

For  recuperation,  and  for  the  regulation  of  their  private  affairs, 
the  discharged  soldiers  are  to  be  granted  for  the  period  of  one 
month  their  customary  pay  and  corresponding  maintenance  and 
clothing  allowances,  and  their  families  must  receive  their  war 
allowances.  For  any  subsequent  periods  of  unemployment  ade- 
quate unemployment  relief  must  be  given. 

Ex-soldiers  must  as  far  as  possible  be  assured  reinstatement 
in  their  former  positions.  As  to  the  right  of  reinstatement,  the 
decision  must  rest  with  arbitration  oflfices.  Grants  by  employers 
to  former  employees  while  on  war  service  do  not  constitute  a 
legal  claim  to  reinstatement  in  their  employment,  but  such  grants 
may  not  be  regarded  as  repayable  loans. 

State  support  must  be  granted  to  participants  in  the  war  whose 
affairs  have  been  utterly  disorganized  by  the  war.  The  rent 
arbitration  offices  are  to  be  carried  over  to  peace  time  and  to 
be  developed  into  general  arbitration  offices  for  debt,  with  power 
to  enforce  their  decisions. 


66      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

The  care  of  those  disabled  in  the  war  is  to  be  regulated  by 
Imperial  legislation. 

The  provision  for  pensions  for  those  disabled  in  the  war  is  to 
be  subject  to  regulation  based  on  social  considerations. 

Soldiers  discharged  from  the  army  are  entitled  to  claim  free 
medical  assistance  from  the  ordinary  local  sick  funds  for  two 
years  after  the  war.  These  sick  funds  are  to  be  increased  by 
additional  grants  from  Imperial  funds  to  meet  the  special  burdens 
thrown  upon  them  by  this  obligation  and  by  the  after-effects  of 
the  war.  The  amounts  and  the  principle  on  which  they  are  to  be 
calculated  must  be  fixed  by  law. 

Any  claim  for  maintenance  made  by  those  discharged  from 
active  service  without  pensions,  owing  to  physical  or  mental 
breakdown,  is  until  the  legal  settlement  of  their  claims  to  be  met 
by  the  general  pensions  fund  to  an  extent  corresponding  to  the 
diminution  in  their  wage-earning  capacity.  The  same  provision 
holds  good  for  their  dependents. 

It  must  be  made  compulsory  for  contractors  who  obtain  orders 
for  public  works  to  employ  those  disabled  by  the  war,  and  this 
obligation  is,  if  necessary,  to  be  extended  to  all  employers.  This 
obligation  must  be  rendered  effective  by  penalties  for  non-com- 
pliance. 

Reconstruction  Program  of  German  Trade  Unions  ^* 

An  abstract  of  the  reconstruction  scheme  dravm  up  by  the 
German  trade-union  organizations  and  federations  of  private  sal- 
aried employees  was  submitted  in  the  form  of  a  petition  to  the 
Bundesrat  and  the  Reichstag.    The  demands  are  as  follows: 

GENERAL  ECONOMIC   MEASURES 

I.  Representatives  of  the  trade-union  groups  and  of  the  joint 
committees  of  the  salaried  employees'  federations  of  the  most 
important  branches  of  industry  and  trades  shall  be  appointed  to 
cooperate  with  the  Imperial  Commissioner  for  Industrial  Recon- 
struction (Reichs-Kommissar  fiir  tJbergangswirtschaft)  and  the 
economic  committee  of  the  Imperial  Ministry  of  the  Interior.  The 
advisory  board  of  the  Imperial  Commissioner  shall  likewise  be  sup- 
plemented by  the  appointment  of  representatives  of  these  organ- 
izations. 

*®  Correspondensblatt  der  Generalkommission  der  Gewerkschaften 
Deutschlands.  vol.  27,  No.  42,  Berlin,  Oct.  20,  1917;  reprinted  in  the 
Monthly  Review  of  the  U.  S.  Bureau  of  Labor  Statistics,  April,  1918. 


THE  LABOR  QUESTION  IN  GERMANY  67 

2.  Until  the  return  of  normal  economic  conditions  the  whole 
of  the  imports  and  exports  shall  be  controlled  by  the  commis- 
sioner. Particular  care  shall  be  taken  at  the  conclusion  of  peace 
that  Germany  obtains  a  sufficient  number  of  counterclaims  to 
cover  her  own  requirements.  Further,  encouragement  must  be 
given  to  the  export  of  such  products  as  are  not  absolutely  required 
for  use  at  home. 

3.  Import  permits  shall  be  made  dependent  upon  the  approval 
of  the  Imperial  Commissioner.  Where  the  right  of  approving 
imports  and  exports  has  been  placed  in  the  hands  of  special 
organizations  these  shall  be  placed  under  the  permanent  control 
of  the  commissioner.  Representatives  of  the  workmen  and  sal- 
aried employees  of  industry  and  trade  groups  concerned  shall 
participate  in  this  control.  In  making  purchases  these  organ- 
izations must  do  away  v/ith  mutual  competition  of  their  purchasing 
agents  and  see  to  it  that  contracts  are  concluded  under  the  most 
favorable  conditions.  The  profits  of  these  organizations  shall 
not  exceed  a  moderate  return  on  the  invested  capital.  Con- 
cealment of  profits  must  be  prevented.  Their  business  transac- 
tions must  be  subject  to  public  control.  Organizations  of  the 
kind  designated  here  are  to  continue  in  existence  only  so  long 
as  is  necessary  for  the  restoration  of  normal  economic  conditions 
in  the  country. 

4.  The  export  of  products  of  which  there  is  a  scarcity  in  the 
home  market  may  be  made  dependent  on  the  approval  of  the 
Imperial  Commissioner. 

5.  German  shipping  concerns,  whether  for  sea  or  inland 
navigations,  must  submit  to  the  orders  of  the  commissioner,  whose 
approval  shall  be  particularly  required  for  the  fixing  of  rates 
and  routes  and  for  the  disposal  of  cargo  space.  In  the  matter 
of  space  preference  shall  be  given  to  raw  materials  and  food- 
stuffs which  are  urgently  required. 

6.  The  extension  of  the  inland  waterways  shall  be  taken  in 
hand  at  once  and  be  carried  out  by  the  Government  according 
to  uniform  principles.  The  administration  and  operation  of  these 
waterways  shall  likewise  be  subject  to  the  supervision  of  an 
Imperial  office. 

7.  The  war  companies  founded  for  the  supply  of  the  various 
industries  shall  distribute  the  raw  materials  and  partly  manu- 
factured goods  according  to  the  capacity  and  requirements  of  the 
individual  establishments.  This  applies  equally  to  goods  importcl 
from  abroad  and  to  those  produced  at  home.  The  scheme  of  dis 
tribution  is  to  be  submitted  for  approval  to  the  commissioner. 

8.  For  the  facilitation  of  the  solution  of  the  economic  prob- 


68   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

lems  of  the  period  of  transition,  for  the  collecting  of  data  on 
economic  conditions,  and  for  the  receiving  and  disposal  of  com- 
plaints, requests,  and  applications  the  Imperial  Commissioner  shall 
establish  in  the  various  Federal  States  and  in  Prussia  for  each 
district  of  each  Province  special  economic  boards  (Wirtschafts- 
amter)  composed  of  an  equal  number  of  representatives  of  em- 
ployers, employees,  and  of  the  competent  State  government  and 
presided  over  by  a  chairman  appointed  by  the  Imperial  Commis- 
sioner. 

9.  In  order  to  initiate  and  promote  economic  activity  the 
Imperial  and  the  Federal  governments,  as  well  as  the  provincial, 
district,  and  communal  authorities,  should  lose  no  time  in  de- 
termining on,  approving,  and  carrying  out  the  public  purchases 
and  works  that  come  within  their  scope.  In  the  first  place  such 
purchases  and  works  shall  be  accelerated  which  are  of  importance 
for  the  revival  of  economic  activity,  for  the  improvement  of  the 
food   supply,   and   for   the   increase   of   housing  accommodations. 

10.  The  commissioner  shall  exercise  control  over  all  economic 
syndicates  which  aim  at  regulating  production,  markets,  conditions 
of  delivery,  prices,  and  imports  and  exports.  He  may  prohibit 
measures  of  the  syndicates  which  may  hamper  the  transition 
from  war  to  peace  conditions. 

FOOD   SUPPLY 

1.  Until  normal  conditions  have  been  reestablished  it  will  be 
necessary  to  retain  for  the  purposes  of  the  food  supply  the 
present  war  kitchen  and  mass-feeding  arrangements,  the  Govern- 
ment control  of  the  most  important  foodstuffs,  maximum  prices, 
requisitioning  and  rationing,  and  penalties  against  profiteering. 
Prices  and  distribution  must  be  arranged  in  such  a  manner  as  to 
secure  to  the  masses  of  the  population  a  cheap  and  adequate 
supply  of  food. 

2.  In  the  interest  of  an  advantageous  and  well-regulated  food 
supply  it  will  be  advisable  to  retain  the  Imperial  grain  office,  the 
central  purchasing  association,  and  those  companies  connected 
with  it  which  play  an  indispensable  part  in  procuring  foodstuffs. 

3.  The  embargo  on  food  exports  must  for  the  present  remain 
in  force  until  the  market  is  sufficiently  well  stocked  to  permit  the 
removal  of  restraints  upon  trade. 

4.  The  importation  of  cattle,  foodstuffs,  and  fodder  must  be 
encouraged  in  the  same  manner  as  during  the  war. 

5.  The  production  of  foodstuffs  must  be  actively  promoted, 
and  facilities  must  be  granted  for  the  acquisition  and  employment 


THE  LABOR  QUESTION  IN  GERMANY  69 

under  cooperative  management  of  machinery  and  appliances  and 
for  the  procuring  of  fertilizers,  seed,  and  fodder. 

6.  All  discrimination  against  cooperative  societies  and  stores 
must  be  prohibited;  nor  must  Government  or  communal  employees 
be  hindered  from  acquiring  membership  in  them. 

EMPLOYMENT   OFFICES 

1.  The  procuring  of  employment  must  be  regulated  uniformly 
for  the  whole  Empire  by  law.  It  must  be  effected  free  of  charge 
and  be  based  on  equal  representation  of  employers  and  employees 
in  the  administration  of  employment  offices. 

2.  The  organization  of  the  employment  offices  must  embrace 
all  occupational  groups.  The  employment  offices  for  private 
salaried  employees  are  to  be  arranged  in  three  groups,  for 
mercantile,  technical,  and  office  employees.  A  labor  office  (Arbeits- 
amt)  shall  be  established  for  every  large  town,  with  its  suburbs, 
and  for  each  rural  district.  To  this  labor  office  shall  be  sub- 
ordinated the  various  employment  offices  within  its  district.  The 
individual  labor  offices  within  specified  territorial  districts  shall 
be  combined  into  federations  (district  labor  offices),  and  an  Im- 
perial Labor  Office  (Reichsarbeitsamt)  shall  be  the  central  author- 
ity in  this  organization  of  the  employment  offices. 

3.  Until  legislation  is  enacted  to  this  effect,  all  employment 
offices  not  conducted  for  profit  shall  be  grouped  together  by  dis- 
tricts under  central  information  offices  (Zentralauskunftsstellen), 
and  an  Imperial  Central  Office  (Reichsstelle)  with  jurisdiction 
over  all  employment  offices  shall  regulate  the  relations  of  the 
central  information  offices  to  each  other. 

Vacancies  shall  be  reported  to  a  general  employment  office  or 
to  an  employment  office  for  the  particular  occupation  in  question. 
Employment  offices  operated  for  profit  shall,  like  free  employment 
offices,  be  under  obligation  to  report  to  the  central  information 
office  the  number  of  vacancies  and  applications  for  employment 
filed  with  them.  The  filling  of  vacancies  shall  not  imply  exemption 
from  the  obligation  to  report  them.  The  central  information 
offices  shall  effect  the  balancing  of  supply  and  demand  in  the  labor 
market  within  their  district. 

The  Imperial  Labor  Office  shall  effect  the  balancing  of  supply 
and  demand  between  the  individual  central  information  offices  and 
issue  regulations  for  the  conduct  of  employment  offices  during 
the  transition  period. 

4.  Special  postal,  telegraph,  and  telephone  facilities  shall  be 
granted  to  the  employment  offices  for  communication  with  one 


70   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

another  and  with  the  central  information  offices.  The  central 
information  offices  shall  be  authorized  to  grant  free  transporta- 
tion to  their  places  of  employrhent  to  soldiers  and  persons  in  the 
auxiliary  service  on  their  discharge. 

5.  The  engagement  of  alien  male  and  female  labor  shall  be 
prohibited,  except  where  a  shortage  of  native  labor  can  be  proved 
to  exist.  Whether  alien  labor  may  be  engaged  shall  be  decided 
by  the  central  information  offices  after  a  hearing  of  employers' 
and  workmen's  economic  organizations.  These  offices  shall  also 
determine  measures  for  the  prevention  of  depression  of  wages 
through  the  introduction  of  alien  labor.  The  Imperial  Labor  Office 
shall  regulate  the  principles  by  which  the  admission  of  alien  labor 
shall  be  governed  during  the  transition  period.  Alien  workmen 
shall  receive  the  same  wages  and  be  guaranteed  the  same  rights  as 
native  workmen. 

DISCHARGE  OF  SOLDIERS  AND  OF  PERSONS   IN   THE  AUXILIARY  SERVICE 

1.  The  discharge  of  soldiers  from  military  service  is  to  be  so 
regulated  as  to  secure  the  immediate  release  of  business  men, 
technical  experts,  foremen,  skilled  workmen,  and  administrative 
officials  who  are  urgently  required  for  the  restoration  of  normal 
economic  activity  and  for  the  resumption  of  operation  of  indis- 
pensable establishments.  In  releasing  soldiers  preference  should 
be  given  to  those  trained  for  an  occupation  in  which  there  is  a 
particularly  strong  demand  for  labor.  Discharge  in  general  should 
be  effected  with  as  little  delay  as  possible.  Congestion  of  the 
labor  market  should  be  no  reason  for  detaining  the  soldiers  longer 
in  military  service  than  is  necessary  for  military  reasons. 

2.  The  discharged  soldier  shall  be  conveyed  free  of  charge  to 
the  place  of  residence  of  his  family,  or  to  his  place  of  employ- 
ment, if  he  can  show  that  he  has  obtained  work. 

3.  The  military  authorities  shall  do  all  in  their  power  to  assist 
the  enlisted  men  in  obtaining  suitable  employment,  especially  by 
directing  them  to  the  proper  employment  office,  by  giving  them 
information,  and  by  assisting  them  in  their  correspondence. 

4.  Reemployment  in  the  establishment  in  which  they  were  em- 
ployed before  the  outbreak  of  the  war  should  as  far  as  possible 
be  assured  to  those  soldiers  who  have  to  support  a  family,  pro- 
vided that  they  have  been  employed  in  the  establishment  at  least 
one  year  before  being  called  in  for  war  service.  Whether  it  is 
possible  in  individual  cases  for  the  owner  of  the  establishment 
to  comply  with  this  obligation  shall  be  decided  by  an  equipar- 
tisan  arbitration  board.     Soldiers  and  auxiliary  service  men  who 


THE  LABOR  QUESTION  IN  GERMANY  71 

are  unable  or  unwilling  to  continue  their  membership  in  an  es- 
tablishment pension  fund  under  the  same  conditions  as  formerly 
must  be  permitted  to  retain  the  rights  they  have  acquired  on 
payment  of  a  moderate  fee. 

5.  Workmen  and  salaried  employees  who  have  been  discharged 
from  military  service  and  can  not  be  assigned  to  suitable  employ- 
ment shall  receive  unemployment  allowances.  Until  State  unem- 
ployment insurance  shall  have  been  introduced,  the  outlay  made  by 
the  communes  on  this  account  is  to  be  refunded  to  them  by  the 
Imperial  Government. 

6.  For  the  purpose  of  recuperating  and  of  attending  to  their 
domestic  and  business  affairs,  soldiers  on  their  discharge  from 
the  army  shall  be  regarded  as  on  leave  for  a  full  month  and  shall 
draw  pay  at  their  former  rate.  Likewise  shall  dependents  of 
discharged  soldiers  continue  to  receive  for  a  full  month  their 
former  State  or  communal  family  subsidy,  irrespective  of  the 
fact  that  the  discharged  men  have  obtained  employment,  and  for 
a  still  further  period  if  they  are  unemployed. 

7.  Soldiers  whose  health  has  been  seriously  impaired  and 
who  are  to  be  discharged  from  the  army  must  be  granted  sufificient 
leave  for  recuperating,  and,  if  necessary,  must  be  enabled  to  take 
a  rest  or  a  course  of  treatment  in  a  health  resort  or  a  sanatorium 
at  the  expense  of  the  Empire.  The  same  privilege  must  be  ac- 
corded to  those  interned  abroad  on  their  return  home. 

8.  Employers  who,  as  a  rule,  employ  not  less  than  20  work- 
men shall  be  required  to  find  suitable  employment  in  their  estab- 
lishment for  at  least  one  disabled  soldier  to  every  20  workmen. 
Exceptions  to  this  rule  shall  be  allowed  only  by  the  equipartisan 
arbitration  board  after  a  hearing  of  the  wages  board  concerned. 

9.  Disabled  soldiers  who  before  being  called  into  military 
service  were  employed  in  Government  or  communal  establishments 
shall  be  reinstated  irrespective  of  the  number  of  workmen  or 
employees  engaged  there. 

10.  The  wages  of  disabled  soldiers  in  private  as  well  as  in 
State  and  communal  establishments  must  be  computed  with  con- 
sideration of  the  actual  work  performed  by  them;  in  particular 
they  must  receive  the  same  wages  for  piecework  as  able-bodied 
workers.  In  no  circumstances  must  pensions  be  taken  into  ac- 
count in  computing  earnings. 

11.  The  employment  conditions  created  by  the  national  auxil- 
iary service  law  shall  be  voided  soon  after  the  termination  of  the 
war  in  such  measure  as  the  restoration  of  normal  economic 
activity  requires.  Workmen  or  employees  who  gave  up  positions 
to  take  up  auxiliary  service  work  shall,  on  being  discharged  from 


72       LABOR  AND  RECONSTRUCTION  IN  EUROPE 

such   work,  be   entitled  to  unemployment  allowances   until   they 
secure  employment. 

12.  Male  and  female  workers  and  salaried  employees  who 
have  to  be  discharged  in  order  to  make  possible  the  reinstatement 
of  ex-soldiers  shall  also  receive  unemployment  allowances  unless 
they  are  assigned  to  some  other  employment. 

REGULATION   OF   WORKING   CONDITIONS    AND   PROTECTIVE  LEGISLATION 

i.  In  view  of  the  unsettled  conditions  that  may  prevail  during 
the  transition  period,  unemployment  allowances  are  to  be  granted 
from  Imperial  funds,  so  long  as  national  unemployment  insurance 
has  not  been  introduced. 

2.  The  state  of  affairs  created  by  Federal  decree,  whereby  in- 
come from  earnings  has  been  made  exempt  from  attachment  to  a 
larger  extent  than  provided  in  article  4,  paragraph  4,  of  the  law 
on  attachment  of  wages,  shall  be  maintained.  Article  850,  para- 
graph 2,  of  the  law  on  civil  procedure  shall  be  made  applicable 
to  wages  and  salaries  of  workmen  and  employees  as  well  as  to 
pensions  and  survivors'  pensions  of  persons  employed  on  the 
basis  of  private  contract,  in  so  far  as  these  wages  or  salaries  do 
not  exceed  5,000  marks  ($1,190)  per  annum. 

3.  Provisions  of  protective  labor  legislation  which  have  been 
temporarily  suspended  during  the  war  must  be  restored  to  full 
effectiveness  immediately  on  the  conclusion  of  peace.  The  pro- 
hibition of  night  work  in  bakeries  and  confectioneries  decreed  by 
the  Federal  council,  as  well  as  the  7  o'clock  closing  order  for 
shops  other  than  those  selling  foodstuffs,  shall  be  retained. 
Where  the  hours  of  labor  have  been  lengthened  in  Imperial, 
State,  or  communal  establishments  they  must  be  reduced  to  the 
pre-war  time  basis. 

4.  With  the  exception  of  the  sickness  insurance  for  home 
workers,  which  must  be  newly  regulated,  the  provisions  of  the 
workmen's  insurance  laws  which  have  been  temporarily  suspended 
during  the  war  must  be  put  in  force  again  immediately  on  the 
conclusion  of  peace. 

5.  The  Federal  decree  relating  to  maternity  benefits  shall 
remain  in  force  during  the  transition  period,  and  steps  are  to 
be  taken  to  incorporate  its  provisions  in  the  Imperial  Workmen's 
Insurance  Code. 

6.  For  adjusting  wage  disputes  and  labor  differences  which 
can  not  be  settled  by  the  authorities  designated  in  collective  agree- 
ments, official  equipartisan  arbitration  boards  shall  be  created 
in  the  individual  Federal  States  and  Provinces  and  an  equiparti- 


THE  LABOR  QUESTION  IN  GERMANY  73 

san  national  arbitration  board  shall  be  created  in  the  Imperial 
Commission  for  Industrial  Reconstruction  for  the  adjustment  of 
disputes  relating  to  a  national  collective  wage  agreement. 

7.  The  workmen's  and  salaried  employees'  committees  and 
arbitration  boards  created  through  the  law  on  the  national  auxil- 
iary service  are  to  be  retained  during  the  period  of  reconstruction 
and  in  normal  times  in  such  a  manner  that  boards  corresponding 
to  the  local  arbitration  board  shall  be  created  in  each  urban  or 
rural  district,  and  boards  corresponding  to  those  maintained  in  the 
district  of  each  army  corps  shall  be  created  for  the  district  of 
each  Province  or  Federal  State.  The  military  chairmen  of  these 
boards  shall  be  replaced  by  officials  of  the  factory  inspection 
service,  and  the  commissioner  for  industrial  reconstruction  shall 
assume  the  functions  of  the  war  office  (Kriegsamt).  In  localities 
in  which  an  industrial  or  mining  arbitration  court  exists  this  may, 
with  the  consent  of  both  parties,  also  be  appealed  to  as  an  arbitra- 
tion board. 

8.  The  workmen's  and  salaried  employees'  committees  shall 
examine  requests,  wishes,  and  complaints  of  the  workers  of  their 
establishments  in  regard  to  wage  and  working  conditions  and  in 
submitting  them  to  the  employer  shall  express  their  opinion  on 
the  question  involved. 

The  arbitration  boards  shall  decide  disputes  which  can  not  be 
settled  through  discussion  between  the  workmen's  committee  and 
the  employer,  by  making  an  award.  The  parties  to  the  dispute 
shall  be  bound  to  appear  before  the  arbitration  board  when 
called  upon.  The  arbitration  board  shall  give  an  award,  even  if 
one  of  the  parties  remains  away  from  the  arbitration  proceedings. 
The  parties  to  the  dispute  must  declare  within  a  certain  time  limit 
whether  they  accept  the  award. 

9.  Workmen  and  salaried  employees  shall  by  Imperial  law  be 
granted  recognized  representation  in  the  form  of  chambers  organ- 
ized on  an  occupational  basis. 

10.  Agreements  made  by  joint  committees  of  employers  and 
workmen's  or  salaried  employees'  organizations  with  the  object 
of  furnishing  employment  or  providing  for  disabled  soldiers  shall 
be  transmitted  to  the  commissioner.  Every  effort  should  be  made 
to  give  effect  to  these  agreements. 

11.  Trade  boards  so  far  created  for  home  workers  shall  be 
retained  and  others  shall  be  established  for  those  trades  in  which 
they  are  yet  lacking.  They  shall  be  authorized  to  regulate  wage 
and  working  conditions  in  a  legally  binding  manner. 

12.  When  orders  are  given  for  work  to  be  done  at  home  in 
behalf  of  the  Empire,   States,  or  communes,  the  wages  therefor 


74      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

shall,  after  consultation  with  the  trade  organizations  of  employers 
and  workmen,  be  determined  in  such  a  manner  that  the  share  of 
the  workers  and  subcontractors  is  clearly  defined  and  may  not  be 
reduced  by  subsequent  agreements.  The  commissioner  shall  be 
authorized  to  give  binding  force  to  these  wage  agreements  for 
home  workers.  Where  no  special  wage  or  arbitration  board  exists 
disputes  are  to  be  settled  by  the  arbitration  board  of  the  particu- 
lar urban  or  rural  district. 

AID  FOR  SOLDIERS  AND  THEIR  DEPENDENTS 

1.  Public  loan  banks  shall  be  established  for  the  assistance  of 
soldiers  who  have  fallen  into  financial  difficulties.  These  banks 
shall  grant  loans  at  moderate  interest  and  on  easy  terms  of  repay- 
ment. The  requisite  funds  shall  be  provided  by  the  Imperial 
Government. 

2.  The  protection  of  debtors,  inaugurated  during  the  war, 
shall  be  retained  and  extended  during  the  period  of  reconstruction. 
A  special  law  shall  be  enacted  which  shall  determine  how  the  con- 
cessions allowed  are  to  be  redeemed. 

3.  The  rent  arbitration  boards  shall  be  retained.  Where  dis- 
putes arise  regarding  accumulated  arrears  of  rent,  the  boards  shall 
strive  to  effect  a  compromise  between  the  parties,  and  where 
these  efforts  prove  unavailing  they  shall  with  due  consideration 
of  the  income  and  financial  situation  of  the  debtor  pronounce 
their  own  award,  which  shall  be  legally  binding.  Whatever  facili- 
ties it  shall  be  possible  to  grant  in  the  way  of  recourse  to  the 
loan  banks,  payment  by  installments,  postponement  of  payment, 
and  remission  of  part  of  the  debt  by  the  landlord,  or  assumption 
of  it  by  the  commune,  State,  or  Empire,  shall  be  duly  considered 
in  the  award. 

HOUSING 

1.  The  erection  of  small  dwellings  shall  be  promoted  through 
participation  by  the  State  and  communes  in  the  capital  stock 
of  public  welfare  building  associations,  through  the  sale  of  fiscal 
or  communal  land  at  moderate  terms,  or  through  the  leasing  in 
the  form  of  hereditary  building  rights  to  such  associations, 
through  the  granting  of  mortgage  loans  at  moderate  interest  and 
easy  refunding  terms  by  insurance  institutes  and  State  and  com- 
munal savings  banks,  or  through  the  guaranty  by  the  State  of 
mortgage  loans  made  by  third  parties. 

2.  The  communes  shall  see  to  it  that  the  building  land  at 
present  lying  idle,  whether  privately  or  publicly  owned,  shall  be 


THE  LABOR  QUESTION  IN  GERMANY  75 

opened  up  as  soon  as  possible ;  they  should  make  the  reduction 
of  improvement  taxes  and  other  real  estate  taxes  and  the  pro- 
motion of  the  erection  of  small  dwellings  part  of  their  program, 
and  they  should  also  erect  dwellings  on  their  own  account. 

3.  The  settlement  on  the  land  of  disabled  soldiers  who  are 
familiar  with  and  capable  of  agricultural  labor  shall  be  promoted 
through  creation  of  suitable  State,  communal,  and  corporate 
organizations  and  through  subsidies  to  welfare  associations  which 
devote  themselves  to  this  task.  Home  colonization,  a  matter  of 
very  urgent  necessity,  shall  be  promoted  by  the  fixing  of  low 
fares  for  local  and  suburban  traffic. 

4.  House  owners  shall  be  granted  concessions  in  the  matter 
of  payments  of  mortgage  interest  which  have  fallen  into  arrears 
during  the  war  through  no  fault  of  their  own.  In  order  to  clear 
off  such  arrears  the  mortgage  arbitration  board  shall  with  due 
consideration  of  the  income  and  financial  situation  of  the  debtor 
endeavor  to  induce  the  creditor  to  accept  payment  by  installments 
or  to  remit  part  of  the  debt,  or  where  necessary  it  should  pro- 
nounce its  own  award. 

5.  Security  for  mortgages  on  real  estate  shall  be  provided  up 
to  a  certain  limit  from  State  funds. 

The  Reconstruction  Scheme  of  the  German  Social  Democratic 

Party  " 

The  following  proposals  with  regard  to  the  German  economic 
and  financial  policy  after  the  war  were  to  be  submitted  to  the 
annual  conference  of  the  German  Social  Democratic  party  which 
opened  at  Wurzburg  October  14,  191 7. 

GENERAL   ECONOMIC   POLICY 

Because  of  the  necessity  for  a  gradual  and  organized  transition 
from  the  present  war  basis,  the  Social  Democratic  party  recom- 
mends: 

(i)  Systematic  purchase,  importation,  and  distribution  of  for- 
eign raw  materials  by  expert  raw  material  purchasing  companies 
under  State  control.  Fixing  of  wholesale  prices  for  imports  and 
regulation  of  distribution  to  the  very  industries  which  manu- 
facture the  raw  material  involved. 

(2)  In  the  same  way  the  importation  of  foodstuffs,  fodder, 
and    foreign    manufactured    goods    must    be    regulated    by    com- 

*'  Vorwaerts,  Sept.  25,   191 7. 


76      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

mercial  purchasing  and  selling  organizations  under  State  con- 
trol. The  rationing  of  the  most  important  necessities  of  life 
and  the  fixing  of  maximum  prices  must  continue  for  the  time 
being.  The  importation  of  delicacies  and  costly  luxuries  must 
be  restricted  to  the  utmost. 

(3)  In  order  to  improve  German  exchange  the  exportation  of 
German  manufactures  must  be  increased  as  much  as  possible 
after  the  war.  Moreover,  German  accounts  outstanding  abroad 
must  be  converted  into  cash,  foreign  securities  in  German  hands 
must  be  sold  abroad,  and  so  far  as  possible  short-term  loans  must 
be  raised  on  satisfactory  terms  at  the  chief  foreign  financial 
centers. 

(4)  To  restore  the  German  merchant  fleet  shipping  firms 
should  be  compensated  for  losses:  loans  by  the  State  for  ship- 
building should  be  granted  on  definite  conditions  so  as  to  secure 
to  the  State  a  share  in  the  control  over  cargo  space,  kinds  of 
cargoes,  and  destination  of  voyage,  and  to  guarantee  the  ad- 
vancement of  the  economic  interests  of  the  people. 

The  best  plan  would  be  the  combination  of  all  the  great  shipping 
undertakings  into  one  syndicate  under  State  control.  In  this  way 
the  Government  would  not  only  be  able  to  exercise  a  restraining 
influence  over  the  fixing  of  freight  rates  but  could  also  arrange 
to  take  a  certain  share  of  the  profits. 

(5)  The  workers  and  employees  called  to  the  colors  must 
not  be  discharged  after  the  conclusion  of  peace  on  purely  mili- 
tary considerations,  without  regard  to  industrial  conditions  and 
labor  markets.  By  means  of  the  local  employment  bureaus,  man- 
aged by  representatives  of  the  employers  and  employed,  and  under 
the  supervision  of  the  Central  State  Employment  Exchange,  it  must 
be  ascertained  what  kind  of  labor  is  required  in  the  various 
industrial  districts.  These  bureaus  must  also  act  as  employment 
agencies  and  arrange  with  the  military  authorities  in  regard  to 
the  discharge  of  men.  Those  workers  who  are  unable  to  find 
work  in  private  business  are  to  be  employed  for  the  time  being 
on  suitable  public  work. 

(6)  The  German  workers  demand  suitable  representation  on 
the  Advisory  Council  of  the  Imperial  Commissioner  for  Transi- 
tion Economy  and  on  the  State  Boards  of  Management  and  Con- 
trol not  merely  concerning  labor  problems,  but  in  the  entire 
reorganization  of  industry. 


THE  LABOR  QUESTION  IN  GERMANY  77 


MONOPOLY^  TRADE,  AND  TARIFF  QUESTIONS 

Although  the  transition  from  war  to  peace  is  the  most  urgent 
problem  of  our  economic  policy,  other  difficult  problems  have 
arisen  from  the  changed  economic  situation.  On  the  one  hand 
many  branches  of  industry  have  undergone  important  technical 
transformation.  They  have  been  trained  in  manufacturing  on  a 
large  scale.  On  the  other  hand  new  incentives  have  been  given 
to  concentration  and  the  formation  of  cartels.  The  tendency 
tovi'ard  concentration  will  probably  manifest  itself  in  the  German 
banking  world  as  soon  as  the  Empire  is  compelled  to  raise  great 
loans,  while  at  the  same  time  industry,  aiming  at  economic  recon- 
struction, makes  its  demands  on  the  banks. 

Foreign  commerce  will  also  undergo  a  great  change.  As  a 
result  of  the  war,  Germany  has  lost  a  large  number  of  foreign 
markets,  which  it  will  be  very  difficult  to  regain,  as  her  competitors 
have  established  themselves  there. 

Accordingly  the  Social  Democratic  party  recommends : 

(i)  The  conversion  of  private  monopolies  into  State  monop- 
olies, especially  in  the  mining  industry,  the  production  of  pig  iron 
and  steel,  and  the  munitions  industry. 

(2)  Extension  of  State  control  of  the  banks,  and  further  de- 
velopment of  the  Reichsbank's  influence  on  private  banking  firms. 

(3)  Conclusion  of  commercial  and  customs  treaties  with 
Austria-Hungary,  Bulgaria,  and  Turkey,  in  which  the  four  allies 
grant  to  one  another  special  trade  and  customs  preferences. 

(4)  As  a  preliminary  condition  to  the  establishment  of  such 
trade  relations  an  abolition  of  the  high  tariff  on  the  necessities 
of  life. 

GENERAL    FINANCIAL    POLICY 

At  the  end  of  1917  the  German  Empire  had  spent  about  100 
billion  marks  in  connection  with  the  war.  This  sum  has  been 
raised  entirely  by  means  of  loans.  To  this  must  be  added  the 
amounts  which  have  been  expended  by  the  Federal  States,  prov- 
inces, and  municipalities  on  war  relief.  The  expenditure  on 
the  support  of  the  needy  families  of  men  called  to  the  colors 
amounts  to  about  3  billion  marks. 

This  debt  of  100  billion  marks  means  an  interest  obligation  of 
5  billion  marks  a  year.  If  the  redemption  of  i  per  cent  of  it 
should  be  decided  on,  that  would  involve  the  addition  yearly  of 
I  billion  marks.  Moreover,  revenue  has  to  be  obtained  for  pen- 
sions and  support  for  war  invalids  and  war  widows  and  orphans. 
During  the  war  this  money  had  been  obtained  from  loans,  but  in 


78      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

future  it  must  be  covered  out  of  current  revenue.  The  sum 
required  at  the  beginning  of  the  fourth  year  of  v^^ar  may  be  esti- 
mated at  nearly  4  billion  marks  per  annum.  This  means  a  total 
increase  in  the  annual  expenditure  of  about  10  billion  marks  with- 
out counting  the  cost  of  the  transition  of  industry  and  of  social 
reconstruction. 

NO    WAR    INDEMNITIES 

Because  of  the  general  military,  political,  and  economic  situ- 
ation, war  indemnities  cannot  be  counted  on.  The  shifting  of  the 
war  expenditures  of  one  group  of  Powers  to  the  shoulders  of  the 
other  is  out  of  the  question.  Political,  economic,  and  financial 
"force  majeure"  are  incompatible  with  peace  by  negotiation,  at 
which  Germany  aims. 

The  magnitude  of  the  sums  which  will  have  to  be  raised  in 
future  by  the  German  people  is  more  clearly  realized  if  they  are 
compared  with  the  property  and  income  of  the  German  people. 
Steinmann-Bucher  estimates  the  total  property  of  the  German 
people,  including  that  which  is  held  by  public  bodies,  at  400  bil- 
lion marks.  More  than  one-fourth  of  this  is  hypothecated  to 
secure  war  debts.  The  debt  of  the  Empire  and  the  Federal  States 
before  the  war  amounted  to  about  315  marks  per  head  of  the 
population;  on  January  i,  1918,  every  inhabitant  of  the  Empire 
must  bear  a  burden  of  about  1,800  marks  of  Imperial  and  State 
debt.  The  total  income  of  the  German  people  was  calculated 
in  1915  at  40  billion  marks.  Of  this  about  25  billion  marks  was 
spent  on  articles  of  consumption,  6  to  7  billion  marks  for  public 
purposes,  and  8  to  8^  billion  marks  employed  as  capital.  The 
total  revenue  from  taxation  in  Germany  amounted  in  1913  to  about 
5  billion  marks  (5,078,700,000)  ;  in  future  it  will  have  to  reach  15 
to  16  billion  marks. 

A  PRINCIPLE  OF  TAXATION 

However,  the  efficiency  of  the  German  people  has  been  dimin- 
ished as  a  result  of  the  war,  which  has  destroyed  a  great  army  of 
sturdy  men,  created  another  army  of  men  of  lowered  efficiency, 
greatly  depressed  the  birth  rate,  depreciated  the  standard  of  health 
of  the  entire  Nation,  exhausted  all  the  stocks  of  goods  and  raw  ma- 
terial, worn  out  the  means  of  production  and  of  transportation,  left 
the  soil  less  fruitful,  reduced  the  number  of  cattle,  broken  off  all 
commercial  relations  with  foreign  countries,  and  opened  up  no 
prospect  of  the  speedy  resumption  of  world  trade.  The  reduced 
strength  of  the  working  class  must,  in  the  interests  of  the  whole 


THE  LABOR  QUESTION  IN  GERMANY  79 

economic  system,  be  recuperated.  Therefore  the  Social  Democratic 
party  must  exercise  its  influence  toward  solving  the  problem  of 
covering  the  cost  of  the  war,  not  by  means  of  doctrinaire  formulas, 
but  by  the  distribution  of  the  burden  so  as  to  prevent  our  product- 
ive labor,  the  most  valuable  part  of  the  Nation's  possessions,  from 
being  overburdened. 

WAR    TAXES 

The  fiscal  policy  of  the  Empire  during  the  war  has  not  met  this 
condition.  In  contrast  to  English  fiscal  policy  it  refrained  from 
meeting  a  part  of  the  war  costs  by  means  of  taxes  and  con- 
fined itself  to  raising  by  loans  the  money  necessary  to  pay  in- 
terest on  the  rapidly  increasing  war  debt.  It  has  also  imposed  yery 
severe  burdens  on  the  essential  consumption  of  the  masses  but  has 
avoided  the  taxation  of  property.  The  taxation  of  the  increment 
obtained  during  the  war  constitutes  no  permanent  levy  on  property 
but  only  a  demand  for  the  return  of  a  fraction  of  the  surplus 
profits  which  have  been  made  by  the  war  contractors  at  the 
expense  of  the  whole  community.  Taxes  on  consumption  of  the 
masses  must  be  replaced  by  equitable  and  expedient  taxes,  such 
as  graduated  taxes  on  income,  property,  and  inheritance. 

LEVY   ON    PROPERTY 

The  first  task  will  be  to  take  a  general  inventory  of  all  prop- 
erty and  to  reduce  all  wealth  to  its  pre-war  level.  The  war  profit- 
eers have  the  great  mass  of  the  people  to  thank  for  their  unex- 
pected riches.  Justice  and  morality  are  opposed  to  the  transfer  and 
concentration  of  wealth  resulting  from  the  war.  Moreover,  one 
must  not  take  seriously  the  excuse  that  war  profiteers  have  ren- 
dered a  great  service  to  the  Fatherland.  The  soldiers  at  the  front 
have  made  greater  sacrifices  than  the  war  profiteers,  yet  they 
receive  no  reward  in  hard  cash;  indeed,  a  bitter  struggle  for 
existence  will  face  most  of  them  after  the  conclusion  of  peace. 
Many  of  the  war  profiteers  unscrupulously  and  knowingly  weak- 
ened the  Fatherland's  powers  of  resistance  in  order  to  fill  their 
own  pockets,  and  they  have  the  indulgent  goddess  Justitia  to 
thank  that  they  have  escaped  prison  by  the  skin  of  their  teeth. 
The  accumulation  of  capital  as  a  condition  to  economic  develop- 
ment will  not  be  adversely  affected  by  the  demand  for  the  return 
of  war  profits,  for  the  sums  thus  obtained  by  the  Imperial  Treas- 
ury will  serve  for  the  repayment  of  war  debts  and  then  flow 
back  again  into  the  channel  of  production.  In  this  way  the 
Empire  will  be  able  to  get  rid  of  part  of  its  load  of  debt  and  of 


8o   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

the  obligation  to  pay  interest  on  it.  Although  this  demand  will 
encounter  the  strongest  opposition  from  all  politicians  with  cap- 
italistic interests,  it  must  be  strongly  urged  by  the  Social  Demo- 
cratic party.  The  rates  of  taxation  of  the  War  Tax  Act,  includ- 
ing the  supertax  decided  on  in  1917,  ranging  from  6  to  60  per 
cent,  are  far  too  mild.  The  sharper  the  taxation  on  war  profits, 
the  greater  the  extent  to  which  the  transfer  of  property  as  a 
result  of  the  war  will  be  got  rid  of. 

Such  a  readjustment  is  desirable  as  a  forerunner  of  another 
measure  which,  like  the  return  of  war  profits  to  the  Imperial 
Treasury,  will  be  of  aid  in  getting  rid  of  the  burden  of  debt. 
This  measure  is  a  general  levy  on  property  (allgemeine  Ver- 
mogensabgabe).  So  long  as  the  losses  of  property  suffered  by 
one  section  of  the  population  during  the  war  are  contrasted  with 
the  great  gains  of  another  section,  the  objection  that  the  tax  is 
inequitable  can  be  urged  against  such  a  levy.  This  objection, 
however,  loses  its  force  in  so  far  as  the  war  profits  are  brought 
back  into  the  hands  of  the  community.  The  working  class,  there- 
fore, is  greatly  interested  in  getting  rid  of  the  debt  because  it  is 
from  the  proceeds  of  the  labor  of  that  class  that  the  capital  of 
the  Empire's  creditors  is  obtained,  and  because  out  of  this  sura 
at  best  only  the  crumbs  fall  to  the  working  class  itself.  But 
advocates  of  getting  rid  of  a  considerable  portion  of  the  Imperial 
debt  are  also  found  among  the  bourgeoisie.  The  solvency  of  the 
Empire  requires  it.  Proposals  have  already  been  made  for  a 
5  to  25  per  cent  levy  on  all  private  property,  except  the  smallest, 
in  order  with  the  proceeds  to  get  rid  of  30  to  40  billion  marks  of 
Imperial  debt. 

If  50  billion  marks  of  debt  is  actually  paid  off  by  means  of 
levies  on  war  profits  and  on  property  generally,  there  remain 
the  obligation  to  pay  interest  on  and  redeem  the  other  50  billion 
marks,  and,  in  addition,  the  necessity  of  providing  relief  for 
the  victims  of  the  war.  About  7  billion  marks  of  current  revenue 
will  then  still  be  necessary.  It  is  impossible  to  raise  such  a 
sum  without  levying  direct  taxes  to  a  large  extent.  The  creation 
of  capital  is  recognized  as  a  condition  of  economic  progress,  but 
in  face  of  the  conditions  brought  about  by  war  it  must  not  be 
promoted  at  the  expense  of  those  types  of  taxation  which  operate 
most  equitably;  rather  by  developing  such  types  can  the  uneco- 
nomic consumption  of  luxuries  by  the  moneyed  classes  be  re- 
stricted. The  Federal  States  must  abandon  their  opposition  to 
the  participation  of  the  Empire  in  direct  taxation.  The  revenue 
of  the  Federal  States  from  these  taxes  must  not  be  reduced,  but 
they  must  allow  the  Empire  to  participate  with  them  in  the  new 


THE  LABOR  QUESTION  IN  GERMANY  8i 

sources  of  revenue.  An  Imperial  income  and  property  tax  is 
necessary.  Placing  the  assessment  of  both  taxes  on  a  uniform 
basis  would  mean  an  economy  of  labor.  As  the  Empire  is  an 
economic  entity,  a  uniform  scheme  of  taxation  is  desirable.  If 
the  Federal  States  retain  the  right  of  levying  higher  rates  of 
income  and  property  tax,  they  do  not  in  any  way  lose  their 
sovereign  power  as  regards  taxation.  The  Empire  could  obtain 
I  billion  marks  from  an  income  tax  without  exhausting  this 
source  of  taxation  so  far  as  the  Federal  States  are  concerned. 
The  graduation  of  the  income  tax  must  be  so  altered  as  to  pro- 
tect productive  labor,  promote  an  increase  of  population,  and 
restrict  expenditures  on  luxuries.  It  is  a  question  whether  for 
the  sake  of  simplicity  the  taxes  on  property,  including  that  on 
property  increases  which  is  already  levied  by  the  Empire,  should 
not  be  retained  for  the  Empire  alone. 

INHERITANCE   TAX 

In  the  field  of  the  taxation  of  inheritances,  the  legal  authority 
which  is  sought  in  the  case  of  income  and  property  taxation 
already  exists.  We  have  an  Imperial  Inheritance  Taxation  Act, 
four-fifths  of  the  revenue  from  which  goes  to  the  Empire.  But 
the  inheritance  tax  is  still  undeveloped.  In  1911  the  inheritance 
tax  per  capita  of  the  population  in  Germany  was  0.95  mark;  in 
England  it  was  11.66  marks.  England  has  further  increased  this 
tax  during  the  war.  The  demand  repeatedly  made  in  the  Reichs- 
tag during  the  war  that  this  tax  shall  be  made  more  productive 
must  be  maintained. 

The  freedom  from  taxation  of  descendants  and  wives  must 
be  abolished.  The  rates  of  taxation  must  be  increased  for  all 
degrees  of  relationship,  not  only  according  to  the  amount  of  the 
inheritance  but  also  according  to  the  total  property  of  the  heir 
where  relatives  surviving  are  very  distantly  connected.  The  State 
is  to  be  a  co-heir  where  the  number  of  children  left  behind  is 
small. 

FURTHER    PROPOSALS 

The  other  taxes  on  property  which  are  recommended  by  the 
bourgeoisie,  such  as  the  tax  on  excess  consumption,  according  to 
income  (Mehrverbrauchseinkommensteuer),  which  is  to  serve  as  a 
counterpoise  to  the  increment  tax,  the  taxes  on  dividends,  coupons, 
and  new  security  issues,  and  the  taxes  on  costly  ornaments  of 
gold,  pearls,  and  jewels,  deserve  to  be  investigated.  There  is  no 
reason  to  object  to  them  on  principle;  but  it  must  not  be  for- 


82   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

gotten  that  taxes  of  this  sort  will  produce  only  a  very  modest 
revenue.  They  serve  not  as  a  substitute  for  but  as  a  supplement 
to  general  taxes  on  property.  The  guiding  principle  of  the  fiscal 
policy  of  the  Social  Democratic  party  must  be  this — that  the 
standard  of  living  of  the  great  masses  of  the  people  must  not 
be  degraded.  Care  must  be  taken  that  production  does  not 
progress  at  the  expense  of  population.  To  a  great  extent  it  de- 
pends on  the  efficiency  of  the  working  class  whether  Germany 
will  regain  her  ability  to  compete  in  the  world  market. 

MONOPOLIES 

Even  if  the  property  taxes  are  greatly  increased,  there  will  still 
remain  a  deficit  amounting  to  billions  in  the  revenue  required. 
To  meet  this  deficit  monopolies  will  have  to  be  created,  but  their 
financial  possibilities  must  not  be  overestimated.  Monopolies 
should  not  constitute  another  form  of  consumption  tax  on  articles 
consumed  by  the  masses.  They  should  bring  into  the  Imperial 
Treasury  profits  of  capital  and  savings  from  operation  on  a  large 
scale.  The  guiding  principles  of  our  attitude  toward  the  question 
of  monopoly  taxes  should  be  as  follows:  Public  interests  must  be 
placed  before  private  interests.  Prices  of  goods  must  be  restricted 
to  the  level  prevalent  in  competitive  plants,  which  will  check  the 
operations  and  efficiency  of  monopolies.  It  is  desirable  that  the 
munitions  industry  should  be  transferred  to  the  State.  In  addi- 
tion numerous  other  branches  of  our  economic  life  are  ripe  for 
monopolization.  A  counter  movement  has  begun  among  the 
capitalists  who  are  affected.  At  this  stage  there  can  be  no  question 
of  definite  schemes,  but  we  must  not  let  ourselves  be  intimidated 
by  the  opposition  of  private  interests.  In  addition  to  pure  State 
monopolies  there  might  be  profitable  businesses  managed  jointly 
by  the  State  and  by  private  interests.  To  surmount  the  difficulties 
which  must  result  from  the  readjustment  of  our  commercial  rela- 
tions with  foreign  countries  it  might  be  well  if  the  State  con- 
trolled great  branches  of  industry. 

Various  proposals  are  aimed  at  the  taxation  of  raw  materials, 
on  the  assumption  that  if  taxation  is  levied  in  the  early  stages 
of  manufacture,  economy  is  promoted  in  the  later  processes,  and 
thus  the  burden  can  be  entirely  removed  by  means  of  technical 
efficiency.  Writers  have  recommended  taxation  of  this  type  as 
an  effective  instrument  for  the  promotion  of  economy  in  pro- 
duction. Any  veiled  attempt,  however,  to  impose  a  burden  on  the 
masses  must  arouse  our  opposition. 


THE  LABOR  QUESTION  IN  GERMANY  83 


FISCAL    POLICY    OF    A    SOCIAL    DEMOCRACY 

The  powers  of  the  party  must  be  exercised  to  protect  the  in- 
terests of  the  proletariat.  The  sine  qua  non  for  this  is  equality 
of  political  rights.  We  shall  obtain  democratic  fiscal  legislation 
if  we  have  a  democratic  constitution. 

The  guiding  principles  of  a  practical  fiscal  policy  for  the  Social 
Democratic  party  follow : 

(i)  The  productive  power  or  the  well-being  of  the  individual 
must  be  safeguarded. 

(2)  The  great  transfer  of  property  caused  by  the  war  must  be 
rectified  by  bringing  back  the  profits  to  the  Imperial  Treasury. 

(3)  All  private  property  above  a  minimum  limit  must  be  sub- 
ject to  a  graduated  tax. 

(4)  The  graduated  income  tax  must  be  steepened  and  must  be 
based  on  social  considerations. 

(5)  The  property  tax  should  be  based  on  Imperial  legislation 
and  graduated. 

(6)  The  inheritance  tax  must  be  extended  to  wives  and  chil- 
dren, the  rates  steeply  graduated,  and  the  right  of  inheritance  by 
the  Empire,  based  on  social  and  eugenic  grounds,  should  be  in- 
cluded. 

(7)  Industries  that  are  suitable  by  their  nature  and  the  state 
of  their  development  must  be  administered  by  the  State  for  the 
sake  of  the  revenue  they  can  produce,  and  for  the  advantage  of 
efficient  methods  of  operation. 

A  Working  Program  of  the  German  Social  Democratic  Party — 
Economic  and  Social  Demands  ^® 

At  a  recent  meeting  of  the  Social  Democratic  party  in  Wurz- 
burg  the  committee  of  the  party  was  charged  to  summon  a  spe- 
cial commission  to  prepare  a  "draft  of  a  working  program  for 
German  Social  Democracy,"  based  on  the  political  and  economic 
conditions  created  by  the  war.  The  program  as  drafted  may 
be  summarized  as  follows: 

POLITICAL  DEMANDS 

Universal  franchise,  responsibility  of  ministers  to  Parliament, 
democratization  of  the  army,  creation  of  organizations  dealing 
with  international  law. 

**  Correspondenzblatt  der  Gewcrkschaften,  June  22,  1918. 


84      LABOR  AND  RECONSTRUCTION  IN  EUROPE 


DEMANDS  FOR  THE  TRANSITION   TO  PEACE  ECONOMY 

In  order  to  obviate  serious  economic  crises  there  must  be  a 
systematic  transition  from  a  war  "economy"  as  it  exists  at  the 
moment  to  a  peace  "economy."  The  rationing  of  foodstuffs  and 
the  fixing  of  maximum  prices  must  continue  temporariJy  so  far 
as  appears  necessary  in  order  to  supply  the  less  well-to-do  strata 
of  the  population  with  the  requisite  foodstuffs  after  the  con- 
clusion of  peace.  The  organization  under  Government  manage- 
ment and  supervision  of  the  importation  of  foodstuffs,  of  the 
supplies  and  distribution  of  raw  materials,  and  of  exportation 
is  necessary,  while  the  existing  depreciated  condition  of  German 
exchange  in  foreign  countries  must  be  remedied  by  suitable 
measures  in  the  domain  of  commerce  and  of  finance. 

Moreover,  in  order  to  import  foodstuffs  and  raw  materials  with- 
out restriction,  it  will  be  necessary  that  the  whole  of  German 
shipping,  including  that  on  inland  waterways,  shall  be  placed 
under  control  of  the  Government,  which  must  be  given  a  decid- 
ing control  over  the  freights,  routes,  and  cargo  space  of  the  mer- 
cantile marine. 

SECURING   THE   LABOR   MARKET   AFTER   THE   WAR 

In  order  to  avoid  a  sudden  flooding  of  the  labor  market,  result- 
ing in  depressed  wages  and  unemployment  after  the  war,  the 
State  must  see  to  it  that  the  workers  and  employees  who  are  dis- 
charged from  military  service  are  reinstated  as  far  as  possible 
in  those  branches  of  industry  and  commerce  in  which  they  were 
formerly  employed,  and  that  for  this  purpose  an  employment 
agency  is  organized.  Should  the  business  concerns  in  any  branch 
of  industry,  owing  to  shortage  of  raw  materials  or  to  technical 
or  other  reasons,  not  be  in  a  position  to  resume  work  to  a  full 
extent,  the  employees  must  not  on  that  account  be  retained  with 
the  colors.  The  payments  to  members  of  the  army  and  relief 
funds  granted  to  their  families  must  be  continued  for  at  least  one 
month  after  their  discharge.  Care  must  be  taken  to  provide 
ample  employment  by  having  recourse  to  useful  public  works  of 
the  State.  Should  these  measures  fail  to  provide  the  unemployed 
with  work  in  their  particular  vocation  after  the  lapse  of  one 
month,  they  must  be  given  suitable  unemployment  relief  from  Im- 
perial funds. 


THE  LABOR  QUESTION  IN  GERMANY  85 


WORKMEN    TO    TAKE    A    SHARE    IN    THE    TRANSITION    ORGANIZATION 

Inasmuch  as  the  organization  of  transition  economy  is  not  the 
special  affair  of  the  employers  or  of  the  Government  officials, 
but  of  all  strata  of  the  population  who  are  interested  in  the  re- 
construction of  the  national  economic  system,  the  German  work- 
ing classes  must  be  given  suitable  representation  in  the  Imperial 
Economy  Office,  the  labor  bureaus,  and  the  employment  agency 
offices,  not  only  in  questions  affecting  workmen  but  in  the  whole 
reshaping  of  the  economic  organization. 

Moreover,  the  German  working  classes  must  be  accorded  by 
means  of  chambers  of  labor  the  same  representation  of  their  in- 
terests and  the  same  official  powers  as  those  possessed  by  com- 
merce, industry,  and  agriculture  in  their  respective  chambers. 

PREVENTION    OF    MONOPOLIES 

As  in  industry,  in  commerce,  and  especially  in  banking,  the 
amalgamations  and  the  tendencies  toward  the  formation  of  cartels 
which  have  made  their  appearance  in  war  time  will  presumably 
be  extended  to  peace  times  and  will  lead  to  an  increase 
in  monopolies,  the  Social  Democrats  demand  that  private 
monopolies  shall  be  nationalized  under  conditions  which  sub- 
ject the  entire  conduct  of  their  business  to  the  control  of 
Parliamentary  committees  and  secure  to  the  workmen  therein 
employed  the  rights  accorded  them  by  the  industrial  code  and 
social  legislation,  which  guarantee  the  workmen  control  of  labor 
conditions.  Moreover,  in  order  to  supervise  organizations  par- 
taking of  the  nature  of  cartels,  a  Cartel  Office  affiliated  with  the 
Imperial  Economy  Office  must  be  established,  with  power  to  ex- 
amine the  business  records  of  the  cartel  associations  and  to  con- 
trol the  raising  of  prices.  Like  the  employers,  the  workmen  are 
also  to  be  represented  on  the  Council  or  the  Export  Committee  of 
the  Cartel  Office.  Imperial  control  of  the  banking  system  must 
be  extended,  and  by  the  development  of  the  Reichsbank  this  in- 
stitution must  obtain  a  larger  influence  on  private  banks. 

COMMERCIAL  POLICY 

It  is  necessary  for  the  reconstruction  of  the  country's  economic 
existence  that  after  the  war  Germany's  former  commercial  rela- 
tions with  foreign  countries  should  be  restored  and  German 
industry  should  be  afforded  the  opportunity  of  extending  its 
market  abroad.     Accordingly,  in   the   peace  treaties   agreements 


86   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

must  be  inserted  preventing  the  continuance  of  the  existing 
economic  war.  Moreover,  steps  must  be  taken  for  concluding 
new  commercial  agreements  which  will  do  away  with  the  existing 
system  of  protecting  the  German  home  market  by  high  duties  on 
foodstuffs. 

TAXATION    AND    FINANCIAL    REFORM 

The  most  important  aim  of  a  taxation  policy  which  will  protect 
the  masses  of  the  population  must  be  so  to  distribute  the  financial 
burdens  left  by  the  war  that  economic  development  may  be  as 
unrestricted  as  possible  and  that  those  of  the  population  who  have 
derived  advantages  from  the  war  should  be  first  called  upon  to 
pay  the  necessary  new  taxes.  Among  the  first  requisites  of  free 
economic  development  must  be  the  husbanding  and  strengthening 
of  human  resources  as  the  most  valuable  part  of  the  national 
wealth. 

Accordingly,  the  following  measures  must  be  demanded: 
(i)  The  settlement  of  a  considerable  portion  of  the  war  debts 
by  a  most  drastic  levy  on  the  increases  of  fortune  resulting  from 
the  war. 

(2)  The  levy  of  a  general  contribution  to  amortize  the  debt 
graduated  in  accordance  with  capacity  to  pay. 

(3)  The  regulation  and  progressive  increase  of  the  income  and 
property  taxes  in  accordance  with  social  and  eugenic  consider- 
ations. 

(4)  The  extension  of  the  inheritance  taxes  by  including  be- 
quests to  children  and  husband  or  wife ;  the  levy  of  a  compulsory 
tax  payable  on  estates  bequeathed  by  childless  persons  or  persons 
with  a  small  number  of  children ;  the  introduction  of  a  law  mak- 
ing the  State  the  sole  heir  when  there  are  no  near  relatives. 

(5)  Increase  of  the  rate  of  the  inheritance  tax,  which  must  be 
graduated  not  only  in  accordance  with  the  degree  of  kinship  and 
the  amount  of  the  bequest  but  also  with  the  total  fortune  of  the 
heir. 

(6)  The  removal  of  all  dues  on  the  consumption  of  necessary 
foodstuffs. 

(7)  All  monopolistic  branches  of  industry  and  the  insurance 
system  are  to  be  taken  over  and  administered  by  public  officials. 

SOCIAL  POLICY 

In  order  to  make  good  the  losses  inflicted  on  the  Nation  by 
the  war  and  to  protect  its  man  power  and  the  rising  generation,  a 
demand  must  be  made  that: 


THE  LABOR  QUESTION  IN  GERMANY  87 

(i)  A  uniform  scheme  of  social-political  legislation  must  be 
developed. 

(2)  The  normal  working  day  must  consist  of  eight  hours;  night 
work  must  be  absolutely  forbidden,  any  exceptional  cases  being 
clearly  defined. 

(3)  Women  must  be  given  complete  protection  before  and 
after  childbirth. 

(4)  The  industrial  employment  of  children  under  15  must  be 
forbidden, 

(5)  Young  persons  must  be  protected,  and  the  welfare  schemes 
for  the  young  extended. 

(6)  Housing  relief  must  be  regulated  by  an  Imperial  statute. 
All  workmen  must  be  conceded  a  distinct  right  to  combine,  and 
the  labor  law  must  be  extended  and  made  uniform. 

(7)  Arbitration  courts,  employment  agencies,  and  unemploy- 
ment relief  must  be  developed  and  regulated  on  uniform  lines 
throughout  the  Empire. 

(8)  A  special  Imperial  Office  for  social  policy  must  be  estab- 
lished in  order  to  enact  uniform  social-political  legislation. 

The  welfare  of  the  war-disabled,  of  the  ex-soldiers  whose 
affairs  have  been  unsettled  by  the  war,  and  of  dependents  of 
the  fallen  demands  special  relief  measures.  Those  persons  who 
have  been  disabled  but  are  in  part  capable  of  earning  a  liveli- 
hood must  be  given  remunerative,  permanent  employment.  The 
exploitation  of  their  handicap  must  be  prevented.  Ruined  ex- 
soldiers  must  be  enabled  to  recover  a  stable  economic  status. 
Accordingly,  the  whole  matter  of  relief  of  war  disability  and  the 
determination  of  the  conditions  justifying  the  grant  of  a  pension 
must  be  regulated  by  social-political  considerations. 

MUNICIPAL   POLICY 

In  accordance  with  the  resolution  adopted  at  its  meeting  in 
Bremen  in  1914,  the  Social  Democratic  party  considers  that  for 
the  transition  period  the  following  tasks  in  the  domain  of  munici- 
pal policy  are  especially  urgent : 

(i)  Finance  and  Taxation.  All  monopolies  affecting  the  muni- 
cipalities are  to  pass  into  their  possession.  All  retail  business 
included  within  industries  which  have  become  or  are  to  become 
monopolies  is  to  be  transferred  to  the  municipalities.  Trading 
monopolies  in  building,  in  land,  and  in  all  indispensable  food- 
stuffs are  to  be  introduced. 

Legislation  is  to  tend  toward  the  development  of  a  higher  level 
of  taxation  of  the  municipalities,  in  order  to  enable  them  to  meet 


88   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

the  tasks  imposed  upon  them,  while  sparing  the  less  well-endowed 
classes. 

(2)  Relief.  Municipal  policies  should  include:  (a)  Care  of 
the  poor  and  orphans,  (b)  Development  of  preventive  poor  relief, 
(c)  Creation  of  special  relief  arrangements  for  ex-soldiers.  The 
rates  of  the  relief  are  to  be  adapted  to  the  position  in  life  of 
the  persons  requiring  assistance,  (d)  Special  relief  for  war 
orphans  of  soldiers. 

(3)  Hygiene,  (a)  Supplying  the  population  with  wholesome 
food  worth  the  money,  (b)  Continuous  supervision  of  the  public 
health,  especially  that  of  infants,  children  still  exempt  from  school 
attendance,  and  school  childrei\.  (c)  Treatment  by  official  doc- 
tors of  children  threatened  by  illness  or  actually  ill.  (d)  In  case 
the  Imperial  maternity  grants  are  abolished,  introduction  of  assist- 
ance by  the  municipalities  to  the  same  extent  at  least  as  that  of 
the  existing  grants,  (e)  Care  of  expectant  and  nursing  mothers, 
corresponding  to  the  advance  in  medical  science. 

(4)  The  Educational  System,  (a)  The  principle  of  free  edu- 
cation and  free  school  books  to  be  carried  out  in  its  entirety. 
(6)  Clever  children  to  be  given  full  opportunity  for  advancement. 


CHAPTER   IV 

THE  LABOR  PROBLEM   IN 
ENGLAND 

GENERAL   ASPECTS 

The  Pre-War  Situation 

To  understand  the  after-war  labor  problem  in  England,  one 
must  recall  some  of  the  history  immediately  preceding  the  war. 
"From  1910  to  1914  industrial  unrest  was  prevalent.  The  emer- 
gence of  the  Labor  party  as  a  real  force  in  1906  was  shortly 
followed  by  a  period  of  political  disillusionment.  Finding  that 
40  Labor  members  in  the  House  of  Commons  could  not  change 
the  situation  materially  in  a  few  years,  the  opinion  of  labor 
swung  back  toward  industrial  action,  and  the  strike  weapon,  al- 
most discarded  by  many  unions  in  the  early  years  of  the  century, 
was  resumed  with  new  vigor.  This  tendency  was  greatly  stimu- 
lated from  1910  onward  by  the  growing  hostility  of  labor  to  the 
industrial  policy  of  the  Liberal  Government.  The  shipyard  move- 
ment of  19 10,  the  transport  strikes  of  191 1,  the  miners'  strike 
of  19 1 2,  the  famous  Dublin  dispute  of  19 13-14  followed  in 
quick  succession;  and  on  the  outbreak  of  war  not  only  was  a 
great  struggle  in  the  building  industry  just  drawing  to  a  close, 
but  still  more  serious  trouble  was  threatened  in  the  mines,  on  the 
railways,  and  in  the  engineering  and  other  industries."  ^ 

The  depression  of  the  early  months  of  19 14  affecting  all  indus- 
tries was  attended  as  usual  by  a  decrease  of  employment  and  of 
wages  which  was  the  source  of  industrial  unrest.  "On  June  14 
the  Glasgow  district  of  the  Amalgamated  Society  of  Engineers, 
representing  the  shipbuilding  industry,  had  decided  to  demand  an 
increase  in  their  rates  of  pay  on  the  termination  of  their  agree- 
ment.   During  the  same  month  the  National  Union  of  Railway 

*G.  D.  H.  Cole,  British  Labor  in  War  Time:  New  Republic,  June  i, 
1918. 

89 


90      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

IMen  adopted  a  national  program  of  an  eight-hour  day  and  an 
increase  of  wages  of  five  shillings  a  week  for  all  classes  of  em- 
ployees. These  movements  were  symptomatic  of  the  general 
trend.  They  were  especially  portentous  because  of  the  current 
tendency  toward  combinations  of  labor  unions  into  large  federa- 
tions of  related  crafts  or  coalitions  of  workingmen  in  interde- 
pendent industries.  In  19 13  three  large  railway  unions  had 
joined  forces.  During  May,  19 14,  a  working  alliance  was  con- 
sidered by  three  of  the  strongest  labor  organizations  in  Great 
Britain,  representing  in  the  aggregate  a  membership  of  1,350,000 
— the  Miners'  Federation,  the  National  Union  of  Railway  Men, 
and  the  General  Transport  Workers'  Federation,  to  which  were 
added  another  150,000  members  from  the  General  Laborers' 
Union,  thus  making  a  combined  prospective  fighting  force  of 
1,500,000  wage  earners.  As  a  result  of  these  activities  and  ten- 
dencies it  had  therefore  become  a  matter  of  general  recognition 
and  comment  in  industrial  and  financial  circles  in  Great  Britain 
during  the  summer  of  19 14  that  the  country  was  gradually  being 
brought  face  to  face  with  an  industrial  upheaval  of  unparalleled 
proportions.  The  combinations,  in  point  of  membership,  re- 
sources, and  control  of  basic  industries,  were  without  prece- 
dent." 2 

The  Industrial  Situation  To-day 

A  picture  of  present  conditions  may  be  obtained  from  the 
"Memorandum  of  the  Garton  Foundation  on  the  Industrial  Sit- 
uation After  the  War."  ^  This  memorandum,  which  is  regarded 
as  a  classic  in  its  field,  is  a  compilation  of  opinions  of  repre- 
sentative manufacturers,  economists,  and  labor  leaders. 

"Among  those  who  are  closely  connected  with  industry, 
whether  as  employers  or  as  leaders  of  organized  labor,  there 
are  many  who  regard  the  future  with  grave  apprehension.  Both 
in  the  difficulties  inseparable  from  readjustment  and  in  the  more 
permanent  effects  of  the  war  upon  our  economic  life,  they  fore- 
see the  occasion  of  a  renewed  outbreak  of  industrial  friction 
which  would  not  only  obstruct  our  commercial  progress  but 
seriously  cripple  our  power  of  recovery. 

•\V.  J.  Lauck,  "British  Industrial  Experience  During  the  War,"  p. 
941. 
'  Pp.  6,  8,  9,  London,  Harrison  &  Sons,  1916. 


THE  LABOR  PROBLEM  IN  ENGLAND  91 

"Because  there  has  been  a  general  cessation  of  disputes  be- 
tween labor  and  capital,  which  has  enabled  us  to  concentrate 
our  energies  upon  the  vigorous  prosecution  of  the  war,  they 
imagine  that  the  problem  of  industrial  unrest  has  in  some  way 
been  solved. 

"There  is  evidence  that  many  of  the  men  who  return  from  the 
trenches  to  the  great  munition  and  shipbuilding  centers  are, 
within  a  few  weeks  of  their  return,  among  those  who  exhibit  most 
actively  their  discontent  with  present  conditions.  Among  those 
who  have  fought  in  Flanders  or  who  have  been  employed  in 
making  shells  at  home  there  are  many  who  look  forward  to  a 
great  social  upheaval  following  the  war.  To  some  this  may 
be  distressing  and  almost  incredible.  The  facts  remain,  and 
the  facts  must  be  faced. 

"So  long  as  the  country  is  actually  at  war  this  spirit  is  likely 
to  be  held  in  check  both  by  the  abnormal  conditions  of  State 
control  and  by  the  patriotism  of  the  mass  of  the  people.  So 
long  as  the  peril  from  without  remains  the  supreme  factor,  we 
may  look  to  the  workman  to  forego  his  most  cherished  safe- 
guards and  to  employers  and  the  propertied  class  to  bear  pa- 
tiently restriction  of  profits  and  an  unparalleled  burden  of  tax- 
ation. But  we  have  had  evidence  of  a  great  body  of  suppressed 
resentment  on  both  sides,  which  does  not  as  yet  come  to  the 
surface.  The  industrial  peace  is  only  a  truce.  It  would  be 
a  mistake  to  assume  that  this  truce  will  survive  the  immediate 
pressure  of  foreign  war  which  brought  it  about. 

"Just  as  nations  formerly  bitterly  opposed  have  been  united 
in  face  of  a  common  peril,  so  Liberal  and  Tory,  labor  and  capital 
have  united  to-day  for  a  specific  purpose." 

From  the  pen  of  Sidney  Webb,  one  of  the  clearest,  most 
sympathetic  and  sanest  students  of  English  labor  conditions, 
comes  the  warning:  "A  grave  peril  hangs  over  the  Nation  in 
the  coming  of  peace.  Unless  a  solution  is  timely  found,  which 
all  parties  will  accept  and  which  will  not  be  prejudicial  to  the 
Nation's  industrial  development,  there  is  serious  danger  of  calam- 
itous industrial  strife.  Without  some  such  settlement,  the  future 
is  indeed  dark."  *  The  suppressed  discontent  and  suspicion  of 
labor,  the  narrowness  of  reactionary  manufacturers,  and  the  dis- 

*  "Restoration  of  Trade  Union  Conditions,"  pp.  7,  8,  102. 


92       LABOR  AND  RECONSTRUCTION  IN  EUROPE 

cordant  strains  of  radical  labor  leaders  give  an  ominous  signifi- 
cance to  such  admonitions. 

There  is  present  on  all  sides  a  sense  of  a  fresh  start  and  a 
resolution  to  deal  with  fundamental  questions. 

"We  must  realize  at  the  outset  the  impossibility  of  confining 
industrial  reconstruction  merely  to  emergency  measures  and  neg- 
lecting ultimate  questions.  During  the  period  immediately  fol- 
lowing the  war  the  industrial  system  will  set  itself  in  new  grooves 
which  will  determine  its  future  lines  of  development.  In  many 
respects  it  has  changed  during  the  war,  and  when  the  war  is 
over  it  may  be  expected  to  adapt  itself  to  peace  conditions.  To 
allow  the  industrial  system  to  set  itself  in  a  new  mold  and  to 
limit  industrial  reconstruction  to  minimizing  hardship  and  gen- 
erally softening  the  shock  of  reversion  to  a  peace  footing  would 
be  an  act  of  folly,  for  the  new  developments  might  soon  prove 
to  be  disadvantageous  to  the  national  welfare. 

"So  far  as  labor  is  concerned,  there  is  deep  dissatisfaction 
with  the  industrial  system.  And  the  changes  made  during  the 
war  have  done  more  to  strengthen  that  feeling  than  to  diminish 
it.  The  real  root  of  the  opposition  appears  to  lie  in  the  view 
that  industry,  alone  of  all  departments  of  national  and  social 
activity,  shows  few  signs  of  becoming  democratic.  To  the  work- 
man it  stands  as  a  huge  oligarchy  in  the  midst  of  a  State  which 
is  becoming  more  and  more  democratic,  and  side  by  side  with 
a  host  of  democratic  voluntary  organizations.  What  is  lacking 
in  industry  is  the  sense  of  freedom  and  responsibility;  what  is 
resented  is  that  the  product  counts  for  more  than  the  producer."  • 

The  Relations  of  Labor,  Capital,  and  the  State 

The  question  of  the  relations  of  labor,  capital,  and  the  State 
was  discussed  extensively  in  a  series  of  articles  in  the  New 
Age,  which  were  subsequently  reprinted  in  book  form.®  These 
articles  discuss  the  probable  industrial  situation  after  the  war 
and  the  policies  to  be  framed  to  cope  with  it,  from  the  point  of 

'Arthur  Greenwood,  "How  Adjustment  May  be  Facilitated  After 
the  War,"  pp.  24,  25 :  The  Reorganization  of  Industry,  Ruskin  College 
Conferences. 

'  Huntley  Carter,  "Industrial  Reconstruction — A  Symposium  on  the 
Situation  After  the  War,  and  How  to  Meet  It,"  E.  P.  Dutton  &  Co., 
1917. 


THE  LABOR  PROBLEM  IN  ENGLAND  93 

view  of  labor,  capital,  and  the  State,  as  viewed  by  manufacturers 
and  heads  of  engineering,  shipbuilding,  and  mining  companies, 
by  labor  leaders,  trade  unionists,  syndicalists,  and  guilds- 
men,  as  well  as  by  legislators,  economists,  educators,  and  authors. 
The  following  summary  of  the  symposium  is  suggestive. 

(i)  The  Condition  of  Labor  After  the  War.  The  war  has 
shown  that  all  industries  aim  at  national  service.  Common  con- 
tact, common  danger,  and  common  suffering  have  led  to  a  better 
understanding  between  capital  and  labor.  However,  there  is  a 
fear  of  an  industrial  revolution  when  over  three  million  soldiers 
will  wish  to  return  to  their  old  tasks  and  about  two  million 
emergency  workers  insist  on  keeping  those  places.  In  addition, 
women  and  juveniles  in  industry,  as  well  as  new  methods  such 
as  the  use  of  automatic  machinery,  the  specialization  of  labor, 
and  the  standardization  of  production  under  a  piece-work  system 
— all  have  changed  the  character  of  British  industry  so  that  there 
may  be  no  places  of  the  old  kind  left  to  take.  A  return  to  pre- 
war conditions  of  inefficiency  and  restriction  of  output  will  be 
resisted  not  only  by  the  employers  but  also  by  clear-thinking 
sympathizers  of  labor. 

The  status  of  labor  depends  of  course  upon  the  final  outcome 
of  the  war,  upon  disarmament,  and  upon  other  indeterminable 
factors.  Yet  there  is  no  doubt  that  the  trade  unions  have  gained 
in  prestige,  because  the  war  industries  are  unionized,  because 
labor  leaders  were  recognized  and  consulted  by  the  Government, 
and  because,  as  was  evident  in  the  exhortations  of  cabinet  min- 
isters to  munition  workers,  the  rank  and  file  constituted  the 
country's  defense  against  the  enemy.  On  the  other  hand,  labor 
has  become  weaker  by  reason  of  the  surrender  of  its  safeguards, 
and  it  is  feared  that  the  demobilization  of  about  two  million 
unorganized  and  unskilled  emergency  workers  operating  auto- 
matic machines  will  diminish  the  bargaining  power  of  skilled 
craftsmen  organized  in  trade  unions.  And  yet  the  fight  is  futile 
against  automatic  machinery,  female  labor,  and  scientific  man- 
agement, all  of  which  are  as  inevitable  as  were  the  application 
of  power  and  machinery  to  industry.  The  war  has  revealed  the 
latent  productive  power  of  England,  whose  artificial  damming 
back  harmed  the  Nation  and  therefore  also  the  workers.  Labor 
can  question  the  distribution  of  profits  only  if  there  are  any 
profits  earned.     On  the  other  hand,  profit  sharing,  which  is 


94   LABOR  AND  RECONSTRUCTION  IN  EUROPE 

favored  by  the  unorganized  workers,  is  regarded  as  a  menace 
to  the  sociaUstic  plans  of  organized  labor.  Factional  strife  within 
the  ranks  of  labor  is  a  disintegrating  force. 

(2)  The  Condition  of  Capital.  As  for  the  condition  of  capital 
after  the  war,  it  will  be  strengthened  by  reason  of  the  huge  war 
surpluses  which  have  been  built  up  and  by  reason  of  the  con- 
centration and  amalgamation  which  took  place  during  the  war. 
In  addition,  control  by  the  State  and  the  increased  part  it  is 
taking  in  commerce  and  industry  tend  to  reinforce  the  present 
dominance  of  capital.  Public  sympathy  also  will  lean  toward 
capital  in  its  attempt  to  capture  foreign  markets,  a  purpose  for 
which  further  combination  has  been  advocated  and  undertaken. 
Interruptions  by  strikes  will  be  resented  in  the  national  interest. 
And  last  but  not  least,  capital  will  be  supported  by  women  and 
unskilled  emergency  workers,  unorganized  and  depending  upon 
a  beneficent  paternalism,  whom  skilled  mechanics,  organized  and 
aggressive,  will  try  to  displace. 

(3)  The  Policies  of  Labor  and  Capital.  The  policies  advo- 
cated naturally  vary.  In  general,  human  happiness  is  regarded 
as  the  aim  of  a  reorganized  society,  and  production  is  regarded 
as  a  means  only  and  not  as  an  end.  Effective  external  competi- 
tion demands  internal  cooperation.  Labor  and  capital  will  have 
to  unite,  even  if  only  temporarily,  to  hold  foreign  markets.  The 
output  per  man  will  have  to  be  increased  without  fatiguing  the 
worker  or  exploiting  labor.  Each  trade  is  to  be  organized  on  a 
national  basis  to  include  all  employers  and  all  employees,  so 
that  the  Government  may  be  able  to  treat  with  entire  industries 
(as  it  now  treats  with  geographic  units  of  government),  and 
not  be  compelled  to  deal  with  incomplete  and  voluntary  profes- 
sional associations  or  workmen's  trade  unions.  Industrial  democ- 
racy implies  that  each  factory  and  each  industry  is  administered 
by  a  joint  council  of  the  employer  and  the  employed. 

{a)  Radical  Views.  In  the  presentation  of  the  policies  of  labor, 
there  are  two  distinct  parties — the  radicals  and  the  moderates. 
One  class  believes  in  revolution,  and  the  other  in  directed  evolu- 
tion.    The  radicals  advocate: 

(i)  That  labor  should  accept  concessions  only  without  sur- 
rendering any  fundamental  rights,  including  the  right  to  repudi- 
ate its  leaders. 


THE  LABOR  PROBLEM  IN  ENGLAND  95 

(ii)  That  an  alliance  with  capital  is  dangerous  under  any 
pretext. 

(iii)  That  the  "three  years'  truce"  with  capital  after  the  war 
would  be  a  fatal  surrender  of  the  right  to  strike. 

(iv)  That  all  welfare  work  and  scientific  management  should 
be  handled  exclusively  by  labor. 

(v)  That  labor  should  reject  profit  sharing  and  copartnership, 
because  they  tend  to  break  down  the  trade-union  spirit. 

(vi)  That  it  should  reject  a  system  of  industrial  reorganization 
in  which  labor  will  be  asked  to  increase  output  on  the  plea  of 
patriotism  and  self-interest  and  to  receive  in  return  the  benefits 
of  unemployment  insurance  and  minimum  wage  acts. 

(vii)  That  it  should  attempt  to  take  control  into  its  own  hands. 

Radical  labor  leaders  fear  that  capital  will  entrench  itself  by 
making  concessions  in  profit  sharing,  copartnership,  welfare  work, 
and  the  limitation  of  hours  of  labor,  but  maintaining  throughout 
the  principle  of  private  profit  to  capital.  "To  further  revolu- 
tionary ends  labor  should  organize,  federate,  and  bluff"  is  the 
epigrammatic  policy  of  one  spokesman,  who  believes  that  cap- 
ital must  prepare  for  peaceful  abdication  but  may  manage  to 
keep  control  for  a  further  brief  period  by  discreet  concessions. 

(b)  Moderate  Views.  Moderate  labor  opinion  is  less  vision- 
ary and  advocates  merely  such  improved  measures  as  can  be 
put  into  effect  at  once.  It  insists  that  capital  recognize  labor's 
share  in  the  national  service  as  the  State  has  recognized  it  and 
justifies  the  desire  to  share  in  shop  control  as  part  of  a  craving 
for  freedom.  Mutual  trust  and  a  desire  to  deal  fairly  should 
guide  labor  policies.  As  scientific  management  increases  output, 
labor  will  not  oppose  it  but  asks  for  a  share  in  its  gains,  realiz- 
ing that  labor's  own  interest  lies  in  more  efficient  production. 
Slacking  and  restriction  of  output  by  labor  are  due  to  a  lack 
of  financial  interest  and  to  fear  of  unemployment  if  work  is 
done  too  fast.  Profit  sharing  and  unemployment  insurance, 
measures  advocated  by  the  moderate  labor  group,  would  remove 
these  two  obstacles  to  increased  production.  If  it  secured  a  share 
in  the  increased  output  labor  would  take  the  initiative  by  insist- 
ing on  efficient  managers  and  efficient  methods.  As  for  the  rights 
of  labor,  every  trade-union  protection  that  has  been  suspended 
during  the  war  should  be  restored  or  an  equivalent  value  granted. 
For  instance,  real  wages  based  on  the  cost  of  living  should  equal 


96      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

in  value  those  paid  before  the  war.  Overtime  should  be  prohib- 
ited and  the  working  day  limited  to  eight  hours,  of  three  shifts 
if  necessary,  so  as  to  give  more  men  work.  The  unorganized 
workers  should  be  admitted  into  the  trade  unions.  Combinations 
of  labor  unions  into  larger  federations  should  be  fostered. 

(4)  State  Policies.  The  State  policies  advocated  for  the  period 
after  the  war  likewise  depend  upon  the  views  of  the  advocates. 
The  guildsmen  believe  that  the  State  should  retain  and  use  the 
plants  it  now  owns,  even  though  it  profiteer  on  its  own  account. 
This  step  will  substitute  public  for  private  authority  and  ulti- 
mately lead  to  the  National  Guild  or  to  producers'  control. 
Further,  the  State  should  readjust  society  to  meet  the  growing 
demands  of  labor  and  not  obstruct  its  preparations  for  industrial 
democracy. 

Men  holding  less  extreme  views  advocate  that  the  State  should 
not  merely  function  negatively,  by  restraining  practices  which 
are  dangerous  to  employees  or  opposed  to  the  public  good,  but 
that  it  should  act  positively,  by  organizing  and  directing  busi- 
ness, by  aiding  unorganized  labor  through  legislation,  and  by 
controlling  and  regulating  credit,  banking,  and  new  issues  of 
capital  as  it  has  done  during  the  war.  Some  labor  leaders  think 
that  the  State  should  have  control  of  "key"  industries,  and  that 
there  should  be  public  supervision  but  not  nationalization.  On 
the  other  hand,  others  think  that  State  activities  are  inefficient. 
With  respect  to  industrial  disputes,  arbitration  and  conciliation 
are  indispensable  to  efficiency,  industrial  peace,  and  the  national 
welfare.  The  State  should  provide  for  conferences  between  labor 
and  capital,  not  only  in  times  of  strike  but  also  in  times  of  peace. 
The  State  should  enforce  trade  agreements,  for  obedience  to  law 
both  by  labor  and  by  capital  is  a  basic  requirement  of  social 
stability. 

THE  EFFECTS  OF  THE  WAS 

Labor  Supply.  Official  British  estimates  show  that  in  October, 
191 7,  there  were  employed  on  munitions  work  and  shipbuilding 
2,022,000  men  and  704,000  women,  most  of  whom  will  have  to 
seek  other  employment  after  the  war.  From  an  army  of  450,000 
men,  including  reserves,  in  the  fall  of  19 14,  England's  military 
establishment  grew  to  7,500,000  men,  who  have  been  withdrawn 


THE  LABOR  PROBLEM  IN  ENGLAND 


97 


from  the  labor  supply.'  These  have  been  replaced  largely  by 
women  and  juveniles.  The  increase  in  the  number  of  women 
and  girls  employed  since  July,  19 14,  and  the  extent  to  which 
they  are  replacing  men  are  shown  in  the  following  table:  * 


Employment  of  Females,  July,  191 7 


Occupation 


Estimated  number 
of  females 
employed 
July,  1914 


Increase 

since 

July,  1914 


Direct 

replacement 

of  men  by 

women 


Industries 

Government  establishments . 
Gas,  water,  and  electricity.  . 
Agriculture  (permanent) .... 

Transport 

Tramways 

Finance  and  banking 

Commerce 

Professions 

Hotels,  theaters,  etc 

Civil  service,  post  office 

Other  than  post  office 

Service  under  local  authority 

Total 

Agriculture  (casual) 

Grand  total 


2,184,000 

2,000 

600 

80,000 

17,000 

1,200 

9,500 

496,000 

67,500 

176,000 

60,500 

4.500 

196,200 


3,295,000 
50,000 


3,345,000 


518,000 

202,000 

4,000 

23,000 

72,000 

16,000 

54,000 

324,000 

20,000 

22,000 

45.000 

53.000 

29,000 


1,382,000 
39,000 


1,421,000 


464,000 

191,000 

4,000 

43,000 

74,000 

16,000 

53.000 

328,000 

21,000 

38,000 

51,000 

48,000 

23,000 


1,354,000 
38,000 


1,392,000 


The  rate  of  increase  of  the  number  of  women  replacing  men 
may  be  seen  from  the  change  in  figures  from  1,071,000  in  Jan- 
uary, 1917,°  to  1,256,000  in  April,  1917,^'^  to  1,392,000  in  July, 
191 7,®  and  to  1,442,000  in  January,  1918."  These  figures  must 
be  corrected  by  the  displacement  from  domestic  service  and  the 
small  workshop  of  about  300,000  women.  The  extent  of  the 
substitution  of  women  for  men  is  as  much  as  80  per  cent  in  the 
textile  industries.^^ 


*  JVall  Street  Journal,  Feb.  6,  1918. 
'Labor  Gazette,  London,   Nov.,   1917,  p.  395. 

*  Board  of  Trade  Labor  Gazette,  London,  various  issues  of  1917  and 
1918. 

"A.  W.  Kirkaldy,  "Industry  and  Finance,  War  Expedients  and  Re- 
construction," p.  32. 
"  Consul  F.  D.  Hale,  Commerce  Reports,  Nov.  6,  1917. 


98      LABOR  AND  RECONSTRUCTION  IN  EUROPE 

The  range  of  vocations  into  which  women  have  been  drawn 
during  the  war  is  coextensive  with  British  industry  itself. 

Replacement  of  Men  by  Women '^^ 

The  placings  of  Labor  Exchanges  for  this  period  show  women 
who  had  been  substituted  for  men  as — 


(I 

(2 

(3 
(4 
(5 
(6 
(7 
(8 
(9 

(lO 

(ii 

(l2 

(13 
(14 
(15 
(16 

(17 
(18 

(19 
(20 
(21 
(22 

(23 
(24 

(25 
(26 
(27 
(28 
(29 
(30 
(31 
(32 
(33 
(34 


learners  in  sheet-metal  working 

engine  cleaners  for  a  railway  company 

machinists  in  a  torpedo  factory 

drivers  for  a  tramway  company 

gas-meter  inspectors 

crane  drivers 

insurance  agents 

sawmill  laborers 

cemetery  laborers 

railway  porters 

painters  of  motor-car  bodies 

machinists  for  engineering  firms 

plumbers  in  a  shipyard 

bill  posters 

electric  welders 

foundry  workers 

armature  winders 

postwomen 

lorry  drivers 

wood-cutting  machinists   for   shipbuilding 

molders  at  a  grinding  mill 

chaufifeuses 

lift  attendants  (elevator  runners) 

tinsmiths 

solderers  in  gas-meter  works 

telephone  repairers 

hay  balers 

laboratory  assistants  for  wholesale  chemists 

tailors'  pressers 

cinema  operators 

bank  clerks 

glass  blowers 

pipe   plasterers 

bake-house  assistants 


"A.  W.  Kirkaldy,  "Industry  and  Finance,"  p.  39,  London,  Isaac  Pit- 
man &  Sons,  1917. 


THE  LABOR  PROBLEM  IN  ENGLAND  99 

(35)  cork  cutters. 

(36)  gardeners. 

(37)  core  makers  in  an  iron  foundry. 

(38)  mechanics  of  many  kinds. 

Labor  Efficiency.  "Notwithstanding  the  vast  withdrawal  of 
man  power  for  naval  and  military  service,  the  production  of 
the  country  appears  to  have  been  not  only  fully  maintained  but 
actually  increased.  The  United  Kingdom  is  the  only  belligerent 
which  increased  its  production  of  food  during  the  war.  Dr. 
Addison  announced  on  June  28,  1917,  that  the  annual  output  of 
steel  was  about  10  million  tons,  as  compared  with  7  million  tons 
before  the  war.  With  regard  to  coal,  notwithstanding  the  with- 
drawal of  282,500  miners,  the  output  for  191 7  was  247  million 
tons,  as  compared  with  289  million  tons  in  1915,  the  home  con- 
sumption being  about  200,000  tons  as  compared  with  191,000 
tons.  There  was  an  increase  of  68  per  cent  in  the  units  of  elec- 
tricity sold  for  the  year  ending  March,  191 7,  as  compared  with 
the  year  ending  March,  1914."^^ 

As  a  result  of  the  recruiting  of  female  labor  and  of  the  adapta- 
tions and  rearrangements  effected  for  speeding  up  production,  the 
increase  in  the  output  of  shells  since  the  founding  of  the  Ministry 
of  Munitions  is  strikingly  illustrated  in  the  official  statement 
that  a  year's  output  at  the  rate  attained  in  1914-15  was  in  191 7 
provided  in — 

13  days  for   i8-lb.   ammunition. 
7  days  for  heavy  howitzers. 
5  days  for  shells  for  medium  guns, 
less  than  one  day  for  shells  for  heavy  guns.^* 

This  increase  of  output  was  made  possible  by  a  se'"ies  of 
studies  in  scientific  management  and  industrial  fatigue.  Dr. 
Stanley  Kent's  report  on  industrial  efficiency  and  fatigue  cites 
an  increase  in  output  due  to  a  decrease  in  the  hours  of  labor  from 
twelve  to  ten  hours  per  day,  and  subsequently  from  ten  to 
eight.^®  As  a  result  of  installing  American  methods  of  scientific 
management,  the  women  of  England  did  as  well  as  the  workers 
in  American  munitions  plants  and  in  some  respects  better,  ac- 

**  Edgar   Crammond,   address   to  the    Society  of    Arts :   New   York 
Journal  of  Commerce,  Mar.  20,  19:8. 
"A.  W.  Kirkaldy,  "Industry  and  Finance,"  p.  42. 
"Dampier  Weatham,  "The  War  and  the  Nation,"  p.  159. 


100    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

cording  to  a  statement  of  the  Labor  Supply  Department  of  the 
Ministry  of  Munitions.^® 

The  English  apparently  have  awakened  to  the  possibilities  of 
this  American  invention,  now  in  unfortunate  disfavor  in  the 
United  States.  One  writer  says:  "It  is  a  fact  that  scientific 
management  is  a  wholly  American  movement.  Its  experiments 
were  American.  Its  leaders  were  American.  Its  literature,  now 
comprising  fully  loo  volumes,  is  entirely  American.  With  re- 
gard to  the  whole  matter,  we  are  still  more  than  ten  years  behind 
the  United  States."  ^^  That  they  are  overcoming  their  handicap 
is  evident. ^^  In  a  Government-controlled  factory  near  Man- 
chester a  cycle  chain  roller  was  at  one  time  made  at  the  rate  of 
one  in  ten  seconds.  As  a  result  of  study  of  the  whole  process 
and  the  elimination  of  unnecessary  movements  it  is  now  being 
made  at  the  rate  of  three  in  eleven  seconds.  A  decrease  of  out- 
put during  the  later  part  of  the  morning  was  detected,  analyzed, 
and  eliminated  by  a  quarter-hour  period  for  rest  and  refresh- 
ment. 

The  abrogation  of  trade-union  limitation  of  production  was  a 
contributing  factor.  "The  relaxation  of  these  restrictive  rules 
and  customs  has  been  accompanied  by  the  use  of  trade-union 
discipline  to  increase  production  in  the  national  interest.  The 
combined  effect  of  these  two  forces  has  been  colossal."  ^^ 

"National  Service."  At  the  beginning  of  19 17  the  British 
Government  realized  that  it  could  not  rely  alone  on  attractive 
wages  to  women,  girls,  and  boys  to  facilitate  the  conduct  of  the 
essential  industries.  The  scheme  for  national  volunteer  service 
was  inaugurated,  under  the  terms  of  which  men  between  the 
ages  of  18  and  61  could  enroll  at  post  offices,  employment  ex- 
changes, and  town  halls.  Conditions  were  set  with  regard  to 
the  rate  of  wages,  traveling  expenses,  and  subsistence  allowances 
for  those  living  away  from  home,  and  provisions  were  made  for 
conferring  modified  unemployment  benefits  to  the  industrial  con- 
script. Men  already  giving  their  best  services  to  the  State  were 
not  to  be  called  upon  to  change  the  nature  of  their  occupation. 

"New  York  Times,  Dec.  27,  1917. 
"Gray  and  Turner,  "Eclipse  or  Empire,"  p.  152. 
"  New  Methods  that  Have  Increased  Output :  System  London,  May, 
1916. 
"  "British  Industrial  Experience,"  p.  1014. 


THE  LABOR  PROBLEM  IN  ENGLAND  loi 

National  service  did  not  carry  with  it  exemption  from  military 
service.  The  object  was  to  obtain  from  the  less  essential  indus- 
tries a  sufficient  number  of  substitutes  to  take  the  places  of  men 
who  had  to  be  released  for  military  purposes  from  the  more  essen- 
tial industries.  Next  was  developed  the  idea  of  a  labor  pool 
or  a  mobile  force — numbering  in  191 7  about  200,000 — which 
might  be  shifted  into  any  form  of  work  that  the  Ministry  con- 
sidered vital  at  any  given  time.^°  To  accomplish  this  purpose 
two  lists  of  trades  have  been  prepared.  One  list,  entitled  "Re- 
stricted Occupations,"  enumerates  industries  into  which  addi- 
tional male  labor  is  not  to  be  permitted  to  go  unless  the  men 
have  enrolled  as  National  Service  Volunteers.  The  other  list, 
covering  "Trades  and  Occupations  of  Primary  Importance," 
shows  in  what  fields  new  labor  may  best  be  used  in  the  national 
interest.  Each  trade,  through  its  Joint  Committee  of  Employers 
and  Workpeople,  if  it  is  one  of  the  organized  trades,  or  through  the 
local  National  Service  Committee,  if  it  is  one  of  the  less  well- 
organized  trades,  prepares  lists  of  "substitution"  volunteers.  The 
terms  of  employment  compensate  those  transferred  to  war  work 
in  detail  as  to  difference  in  wages,  railroad  fare,  and  subsistence 
allowances. 

Studies  in  Labor  Welfare.  As  a  result  of  the  scarcity  of  labor 
which  prevailed  even  after  the  utilization  of  women  and  juveniles 
and  after  the  inauguration  of  National  Service  schemes  for  the 
transferring  of  labor  from  the  less  to  the  more  essential  indus- 
tries, studies  were  undertaken  to  improve  the  efficiency  of  the 
individual  worker.  The  "British  Health  of  Munition  Workers 
Committee"  was  appointed  in  the  middle  of  September,  191 5, 
by  the  Minister  of  Munitions,  to  consider  and  advise  on  questions 
of  industrial  fatigue,  hours  of  labor,  and  other  matters  affecting 
the  personal  health  and  physical  efficiency  of  workers  in  muni- 
tions factories  and  workshops.^^ 

The  scope  of  the  studies  is  indicated  in  the  titles  of  the  memo- 
randa submitted,  namely,  "Sunday  Labor,"  "Hours  of  Work," 
"Statistical  Information  Concerning  Output  in  Relation  to  Hours 
of  Work,"  "Industrial  Fatigue  and  Its  Causes,"  "Sickness  and 

'^Journal  of  Commerce,  Jan.  3,  1918;  British  Board  of  Trade  Labor 
Gazette,  February,  March,  April,  and  May,  1917. 
**  U.  S.  Bureau  of  Labor  Statistics  Bulletins  221,  222,  223  and  230. 


102     LABOR  AND  RECONSTRUCTION  IN  EUROPE 

Injury,"  "Special  Industrial  Diseases,"  "Ventilation  and  Light- 
ing of  Munitions  Factories  and  Workshops,"  "The  Effect  of 
Industrial  Conditions  upon  Eyesight,"  "Welfare  Supervision," 
"Industrial  Canteens,"  "Investigation  of  Workers'  Food  and  Sug- 
gestions as  to  Dietary,"  "Washing  Facilities  and  Baths,"  "The 
Employment  of  Women,"  "Juvenile  Employment,"  "The  Com- 
parative Efficiency  of  Day  Work  and  Night  Work  in  Munitions 
Factories,"  "The  Causes  and  Conditions  of  Lost  Time,"  "Incen- 
tives to  Work  with  Special  Reference  to  Wages,"  and  "Health 
and  Welfare  of  Munition  Workers  Outside  of  Factories."  (These 
memoranda  received  early  notice  by  the  United  States  Bureau  of 
Labor  Statistics  and  were  subsequently  reprinted  in  a  special 
series  by  that  Bureau.  Unfortunately,  insufficient  publicity  and 
therefore  little  credit  is  given  to  its  splendid  work  in  this  direc- 
tion.) 

Industrial  Unrest.  Not  only  have  the  conditions  affecting 
individual  efficiency  been  studied  as  a  result  of  the  war,  but 
also  the  social  conditions  which  affect  output.  The  Section  of 
Economics  and  Statistics  of  the  British  Association  for  the  Ad- 
vancement of  Science  appointed  a  conference  committee  to  con- 
si^r  this  question.  Its  report  ^^  on  industrial  unrest  indicates 
the  following  to  be  the  main  causes  which  have  been  suggested: 

(i)  The  desire  of  workpeople  for  a  higher  standard  of  living. 

(2)  The  desire  of  workpeople  to  exercise  a  greater  control  over 
their  lives  and  to  have  some  determining  voice  as  to  the  con- 
ditions of  work.  These  include  a  consideration  of  the  effects  of 
speeding  up  on  the  one  hand  and  of  the  limitation  of  output  on 
the  other. 

(3)  The  uncertainty  of  regular  employment. 

(4)  Monotony  in  employment. 

(5)  Suspicion  and  want  of  knowledge  of  economic  conditions. 

(6)  The  desires  of  some  employees  for  more  regular  and  satis- 
factory labor. 

(7)  The  effects  of  war  measures. 

In  the  follovnng  year  (June  12,  191 7)  Lloyd  George  appointed 
a  "Commission  to  inquire  into  and  report  upon  industrial  unrest 
and  make  recommendations  to  the  Government  at  the  earliest 

*'A.  W.  Kirkaldy,  "Labor,  Finance,  and  the  War,"  p.  21,  1916. 


THE  LABOR  PROBLEM  IN  ENGLAND  103 

practicable  date."    The  following  is  a  summary,  in  part,  of  the 
findings  of  this  commission: 

(i)  High  food  prices  in  relation  to  wages  and  unequal  dis- 
tribution of  food. 

(2)  Restriction  of  personal  freedom  and  the  effects  of  the 
Munitions  of  War  Act. 

(3)  Lack  of  confidence  in  the  Government — a  feeling  that 
promises  a3  regards  the  restoration  of  surrendered  trade-union 
customs  will  not  be  kept. 

(4)  Delay  in  the  settlement  of  disputes. 

(6)  Lack  of  housing  in  certain  areas. 

(7)  Restrictions  on   liquor  consumption. 

(8)  Industrial   fatigue. 

(9)  Lack  of  proper  organization  among  the  unions. 

(10)  Lack  of  communal  sense — a  break-away  from  faith  in 
Parliamentary  representation. 

(13)  Lowering  of  the  limit  of  income-tax  exemptions. 

This  situation  was  pat  in  concrete  figures.  "Wages  in  Great 
Britain  advanced  more  than  a  half  billion  dollars  last  year.  This 
has  had  a  marked  effect  on  prices  and  has  caused  disputes  that 
resulted  in  the  loss  of  millions  of  working  days."  -^  "Rates  of 
money  pay  were  advancing  but  they  failed  to  keep  pace  with 
the  abnormal  increase  in  prices.  The  constantly  growing  pressure 
upon  industrial  workers  for  overtime  and  general  speeding  up  as 
well  as  the  suspension  of  pre-war  standards  were  accompanied 
by  a  harrowing  increase  in  retail  prices  and  a  decline  in  real 
wages."  ^* 

The  industrial  unrest  prevailing  was  the  occasion  for  caustic 
attacks  on  the  present  economic  system  and  the  basis  for  arous- 
ing a  passionate  discontent  in  the  minds  of  workingmen.^^  The 
various  long-range  programs  for  eliminating  or  mitigating  indus- 
trial imrest  are  given  elsewhere. 

"Liverpool  Post,  quoted  by  the  Wall  Street  Journal,  Jan.  30,  1918. 

**  "British  Industrial  Experience,"  p.  960. 

**G.  D.  H.  Cole,  "Self  Government  in  Industry." 


104    LABOR  AND  RECONSTRUCTION  IN  EUROPE 


EMERGENCY  MEASURES 

Demobilization  of  Soldiers  and  Munition  Workers,  Women,  and 

Juveniles  ~^ 

(i)  Of  Soldiers,  (a)  Principles  of  Demobilization.  While 
the  problem  of  demobilization  had  been  discussed  as  early  as 
19 1 5,  a  clear  statement  of  it  by  Parker  of  Waddington  is  found 
in  the  Quarterly  Review  for  April,  1916.^'' 

"The  most  immediate  and  obvious  of  our  after-war  problems 
is  the  demobilization  of  our  military  forces.  In  order  to  return 
so  large  a  body  of  men  to  industrial  life  with  the  least  possible 
friction  and  in  the  shortest  possible  time,  we  surely  need  some 
central  executive  body  in  close  touch  with  those  requiring  work 
on  one  hand  and  with  their  possible  employers  on  the  other — 
a  body  which  will  not  content  itself  with  helping  mdividual  ap- 
plicants but  will  itself  take  the  initiative  in  the  matter.  It  will 
have  to  ascertain  and  classify  those  who,  when  the  war  is  over, 
will  desire  to  obtain  employment,  with  their  qualifications  and 
preferences  as  to  locality  and  otherwise.  It  will  in  like  manner 
have  to  ascertain  and  classify  the  various  industries  throughout 
the  country  which,  after  the  war,  will  require  labor,  and  the 
extent  to  which  and  the  time  at  which  this  labor  will  be  required. 
It  may  also  be  advisable  to  consider  what  industries,  from  a  con- 
sideration of  financial  credit,  ought  to  be  reorganized  first." 

The  principles  that  should  govern  reconstruction  were  stated 
in  a  conference  on  the  reorganization  of  industry,  held  at  Ruskin 
College  July  21  to  23,  19 16,  by  Arthur  Greenwood:  ^* 

"The  war  office  may  of  course  find  that  there  are  obstacles  to 
any  other  method,  but  these  obstacles  must  be  proved  to  be 
insuperable  before  the  country  is  committed  to  demobilization 

^  "Credit,  Industry,  and  the  War,"  reports  presented  to  the  Section 
of  Economic  Science  and  Statistics  of  the  British  Association  for  the 
Advancement  of  Science,  edited  by  A.  W.  Kirkaldy,  Pitmans,  London, 

1915- 

"  See  also  Sidney  Webb  and  Arnold  Freeman,  Great  Britain  After 
the  War:  Idem,  September,  1916;  and  Sidney  Webb,  When  Peace 
Comes :  Idem,  October,  1916. 

**"How  Readjustment  After  the  War  May  Be  Facilitated,"  pp.  27, 
28,  29. 


THE  LABOR  PROBLEM  IN  ENGLAND  105 

by  military  units.  The  mobilization  of  the  army  and  enlistments 
generally  were  governed  primarily  by  military  and  not  by  indus- 
trial considerations.  The  claims  of  industry  came  second  to 
the  claims  of  the  War  Office.  But  demobilization  is  primarily  an 
industrial  and  a  social  question  and  only  in  a  minor  degree  a 
military  question.  Industrial  and  social  considerations  ought 
therefore  to  govern  the  situation.  A  reasonably  long  furlough 
should  be  granted  to  as  many  soldiers  as  possible  when  the  time 
comes,  and  during  this  period  arrangements  could  be  made  in 
large  numbers  of  cases  for  return  to  civil  employments.  In 
general  it  may  be  said  that  the  army  should  be  disbanded  so  far 
as  possible  according  to  the  needs  of  industry — that  is  to  say, 
that  workers  in  the  army  for  whose  services  there  is  an  assured 
need  should  be  liberated  first,  and  that  soldiers  for  whom  there 
may  be  some  difficulty  in  obtaining  suitable  employment  should, 
provided  they  offer  no  objection,  be  retained  in  the  army  until 
industrial  outlets  can  be  obtained  for  them.  Where  after  inquiry 
it  is  found  that  soldiers  have  situations  awaiting  them,  military 
regulations  should  not  stand  in  the  way  of  an  early  discharge. 
In  other  words,  just  as  the  industrial  population  owing  to  the 
war  was  considered  as  a  military  reserve,  so  after  the  war  the 
army  should  be  considered  as  an  industrial  reserve. 

"The  problem  of  demobilization  consists  in  the  satisfactory 
reinstatement  of  something  like  4,000,000  soldiers  in  civil  life, 
and  the  transfer  of  perhaps  2,000,000  or  more  workers  for  labor 
of  a  different  kind.  The  question  is  therefore  one  of  enormous 
proportions,  and  considerable  dislocation  is  inevitable  unless  there 
is  adequate  organization.  Never  before  has  a  community  been 
faced  with  a  problem  of  absorption  on  so  large  a  scale.  Philan- 
thropy and  voluntary  efforts  could  not  possibly  cope  with  it. 

"The  disbandment  of  the  greater  part  of  the  4,000,000  soldiers 
in  our  army  may  easily  add  enormously  to  the  dislocation  after 
the  war.  Demobilization  by  regiments  or  battalions,  for  exam- 
ple, would  accentuate  the  difficulties  of  absorption  and  rein- 
statement. 

"At  the  end  of  the  war  there  will  be  a  considerable  number  of 
partly  disabled  soldiers  who  will  be  in  receipt  of  pensions.  It 
is  necessary,  therefore,  that  steps  should  be  taken  to  prevent 
these  men,  because  they  are  subsidized  by  the  State,  entering  into 
competition  with  other  workers.    The  competition  of  these  dis- 


io6    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

charged  soldiers  can  be  minimized  by  the  adoption  of  a  legal 
minimum  wage  for  partly  disabled  soldiers  equal  to  the  prevail- 
ing rate  of  pay  for  the  work  on  which  they  are  employed."  ^^ 

(b)  Mechanics  of  Demobilization. —  (i)  Committees  on  De- 
mobilization. The  Ministry  of  Reconstruction  in  191 7  appointed 
a  group  of  committees  to  consider  the  various  aspects  of  demo- 
bilization. 

(i)  Demobilization  of  the  Army  Committee. — To  consider  ar- 
rangements for  the  return  at  the  end  of  the  war  to  civil  employ- 
ment of  ofificers  and  men  serving  in  the  land  forces. 

(2)  Officers'  Resettlement  Subcommittee. — To  consider  and  re- 
port what  arrangements  require  to  be  and  can  be  made  on 
demobilization  for  resettlement  of  officers  in  civil  life,  and  also 
of  men  belonging  to  classes  to  which,  in  the  main,  officers  belong. 

(3)  Disabled  Officers'  Employment  Committee. — To  assist  dis- 
abled or  invalided  officers  who  may  be  desirous  of  obtaining 
employment. 

(4)  War  Office  Demobilization  Committee. — To  consider  ques- 
tions requiring  settlement  in  connection  with  the  demobilization 
of  the  army  in  so  far  as  they  fall  within  the  province  of  the  War 
Department;  to  act  as  a  link  with  the  committee  of  the  Ministry 
of  Reconstruction;  and  to  prepare  a  draft  scheme  of  demobiliza- 
tion. 

(5)  Demobilization  Coordination  Committee. — (a)  To  consider 
how  far  the  proposed  special  arrangements  to  demobilize,  im- 
mediately peace  is  declared,  men  specially  required  in  connection 
with  the  work  of  demobilization  can  or  should  be  extended  to 
other  men  belonging  to  the  public  service  or  to  similar  "pivotal" 
men  in  industry.  (&)  To  coordinate  the  working  of  the  demobil- 
ization scheme  of  the  War  Department  with  the  resettlement 
scheme  of  the  Ministry  of  Labor,  (c)  To  settle,  during  de- 
mobilization, instructions  with  regard  to  priority  which  may  ap- 
pear to  be  rendered  necessary  on  public  grounds  or  by  the  sort 
of  employment  in  the  different  industries. 

(6)  Civil  War  Workers'  Committee. — To  consider  and  report 
upon  the  arrangements  which  should  be  made  for  the  demobili- 
zation of  workers  engaged  during  the  war  in  national  factories, 
controlled  establishments,  and  other  plants  engaged  in  the  pro- 
duction of  munitions  of  war  and  on  Government  contracts,  or  in 

"  See  also  Consul  Franklin  D.  Hale,  Reemployment  After  the  War 
in  England :  Commerce  Reports,  Nov.  7,  1917. 


THE  LABOR  PROBLEM  IN  ENGLAND  107 

plants  where  substitute  labor  has  been  employed  for  the  duration 
of  the  war. 

(7)  Horse  Demobilization  Committee. — To  frame  proposals  for 
the  demobilization  of  horses  and  mules  in  relation  to  the  general 
scheme  of  demobilization. 

(8)  Disposal  of  War  Stores  Advisory  Board. — To  expedite  the 
preparation  of  any  necessary  inventories  of  property  and  goods 
of  all  descriptions  held  by  Government  departments,  and  to  con- 
sider and  advise  upon  the  disposal,  or  alternative  form  of  use, 
of  any  property  or  goods  which  have  or  may  become,  during  or  on 
the  termination  of  the  war,  surplus  to  the  requirements  of  any 
department. 

(ii)  Procedure.^°  According  to  an  announcement  of  the  Min- 
istry of  Labor,  the  responsibility  for  carrying  out  demobilization 
will  rest  with  the  Admiralty  and  the  War  Office,  so  far  as  the 
naval  and  military  arrangements  are  concerned,  and  with  the 
Ministry  of  Labor  as  regards  the  resettlement  of  discharged 
sailors  and  soldiers  in  civil  life. 

"The  Lords  Commissioners  of  the  Admiralty  and  the  Army 
Council  have  accepted  as  the  basis  of  their  plan  for  demobiliza- 
tion the  principle  that  when  a  lasting  peace  has  been  assured 
men  must  be  released  from  the  forces  in  accordance  wath  civil 
rather  than  naval  or  military  requirements. 

"In  order  to  help  the  sailors  and  soldiers  to  get  back  into 
civil  life  as  quickly  and  as  easily  as  possible,  the  Ministry  of 
Labor  proposes  to  use  the  machinery  of  the  employment  ex- 
changes. The  Minister  of  Labor  also  proposes  to  invite  the 
employers'  associations  and  trade  unions  to  give  him  the  fullest 
possible  assistance  both  centrally  and  locally.  In  the  first  place, 
a  central  committee,  to  be  known  as  the  Labor  Resettlement^ 
Committee,  has  been  set  up,  consisting  of  representatives  of  the 
employers  and  the  trade  unions  in  the  principal  industries  in 
equal  numbers,  together  with  representatives  of  the  departments 
concerned  with  demobilization.  The  Minister  of  Labor  will  be 
chairman  of  the  committee. 

"In  addition  to  the  Labor  Resettlement  Committee,  Local  Ad- 
visory Committees  have  been  set  up  in  connection  with  all  the 
principal  employment  exchanges,  consisting  of  representatives  of 
the  employers  and  trade  unions  in  the  principal  local  industries 

*° British  Board  of  Trade  Journal,  Feb.  21,  1918,  p.  222. 


io8  LABOR  AND  RECONSTRUCTION  IN  EUROPE 

in  equal  numbers,  to  whom  will  be  added  for  the  purpose  of 
demobilization  a  certain  number  of  representatives  of  local  bodies 
particularly  concerned  with  the  welfare  of  discharged  soldiers.  It 
is  hoped  that  a  great  deal  of  the  work  of  finding  employment  for 
discharged  men  and  of  adjusting  the  difficulties  which  may  arise 
in  individual  cases  will  be  performed  by  these  committees,  which 
the  Minister  regards  as  a  vital  part  of  the  machinery  for  the 
resettlement  of  industry. 

"Further,  in  addition  to  the  general  questions  which  will  be 
dealt  with  by  the  Central  Committee  and  the  local  or  individual 
questions  which  will  be  dealt  with  by  the  Local  Advisory  Com- 
mittees, there  are  a  number  of  problems  which  can  be  satisfac- 
torily solved  only  by  the  industries  themselves.  The  Minister 
is  accordingly  very  anxious  that  Joint  Standing  Industrial  Coun- 
cils ^^  shall  be  set  up  for  the  organized  industries  as  soon  as  pos- 
sible on  the  lines  recommended  by  the  Whitley  report.  To  these 
bodies  he  would  be  prepared  to  refer  immediately  a  number  of 
problems  of  this  kind  which  require  careful  consideration  by 
workmen  and  employers  sitting  together.  The  functions  of  these 
councils  in  regard  to  resettlement  would  be  coordinated  by  the 
Central  Committee." 

(2)  Of  Civilian  War  Workers?"^  The  "First  (interim)  Report 
of  the  Civil  War  Workers'  Committee,"  vv'hich  was  appointed  by 
the  Ministry  of  Reconstruction  "to  consider  and  report  upon 
the  arrangements  which  should  be  made  for  the  dem.obilization 
of  workers  engaged  during  the  war  in  national  factories,  in  con- 
trolled establishments,  in  other  firms  engaged  in  the  production 
of  munitions  of  war  and  on  Government  contracts,  or  in  firms 
where  substitute  labor  has  been  employed  for  the  duration  of 
the  war,"  covers  the  question  of  demobilizing  the  nonmilitary 
war  workers. 

The  summarized  recommendations  of  this  report  provide  that — 

(o)  Steps  should  be  taken  by  the  Government  to  assist  muni- 
tions workers  and  others  discharged  on  the  termination  of  hostili- 
ties to  return  to  their  former  or  other  employment. 

(6)  The  machinery  for  this  purpose  should  be  the  Employment 
Exchanges,  working  in  conjunction  with  the  Labor  Resettlement 

"  See  Whitley  report,  cited  below. 

"  Labour  Gazette,  London,  August,  1918,  p.  307. 


THE  LABOR  PROBLEM  IN  ENGLAND  109 

Committee  and  the  Local  Advisory  Committees,  which  are  now 
being  constituted  by  the  Ministry  of  Labor  in  accordance  with 
the    recommendations    of    the    Army    Demobilization    Committee. 

(c)  In  addition,  the  advice  of  industries  as  a  whole  should, 
where  necessary,  be  sought  through  the  Joint  Industrial  Coun- 
cils,^ where  these  exist,  or  otherwise  through  the  temporary 
Trade  Committees,  which  are  now  being  set  up  jointly  by  the 
Ministry  of  Reconstruction,  the  Board  of  Trade,  and  the  Ministry 
of  Labor. 

(d)  As  soon  as  there  is  a  reasonable  prospect  of  peace,  the 
Local  Advisory  Committees  and  the  Employment  Exchanges 
should  take  steps  to  ascertain  where  workers  are  likely  to  be  re- 
quired immediately  on  the  termination  of  the  war,  and  what  the 
demands  of  individual  factories  are  likely  to  be. 

(e)  The  registration  of  individual  war  workers  should  be  un- 
dertaken with  a  view  to  facilitating  their  return  to  their  former 
employment  or  finding  fresh  employment  for  them.  The  details 
of  this  scheme  should  be  worked  out  by  the  Ministry  of  Labor, 
care  being  taken  that  the  assistance  of  trade  unions  shall  be 
secured, 

(/)  Arrangements  should  be  made  in  connection  with  the 
termination  of  Government  contracts  whereby  munition  workers 
should  receive  a  fortnight's  notice  or  a  fortnight's  wages. 

(g)  Steps  should  be  taken  by  the  departments  concerned  to 
encourage  Government  Departments,  public  or  semi-public  bodies, 
and  private  employers  to  take  post-war  contracts  in  advance,  the 
contracts  being  arranged,  if  necessary,  at  provisional  prices  to 
be  adjusted  later  according  to  revised  estimates  of  the  cost  of 
labor,  materials,  and  other  things,  or,  as  an  alternative,  on  a 
percentage  profit  basis.  Similar  measures  should  be  taken  by 
the  Department  of  Overseas  Trade  through  its  trade  commis- 
sioners and  commercial  attaches  abroad. 

(h)  The  Government  should  have  in  readiness,  before  the  end 
of  the  war,  further  schemes  to  meet  the  possibility  of  any  local 
or  general  unemployment  which  may  prove  to  be  more  than  of  a 
temporary  nature. 

(3)0/  Women.  "One  of  the  most  difficult  problems  connected 
with  demobilization  concerns  the  position  of  those  women  who 
during  the  war  have  done  industrial  work  hitherto  done  by  men 
only.  If  women  are  to  compete  with  men  to  a  greater  extent 
than  they  have  done  in  the  past,  a  series  of  fresh  problems  must 
"  See  Whitley  report,  cited  below. 


no    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

necessarily  arise.  It  will  of  course  be  necessary  to  consider  upon 
what  conditions  women  can  be  admitted  to  industrial  competi- 
tion without  danger  to  their  health  or  the  health  of  the  next 
generation.  Besides  this,  it  is  obvious  that  increased  competition 
in  the  labor  market  has  a  tendency  to  reduce  wages  and  must 
almost  necessarily  do  so  unless  accompanied  by  a  corresponding 
expansion  in  industries,  for  which  again  time  and  capital  will  be 
required.  Moreover,  men  are  not  unlikely  to  resent  the  increased 
competition  of  women;  and  this  resentment  will  be  justifiable  as 
long  as  employers  are  able,  by  reason  of  the  fact  that  women's 
labor  is  unorganized,  to  impose  on  them  a  scale  of  wages  lower 
than  that  enjoyed  by  men  doing  similar  work.  If  women  are 
to  compete  with  men,  they  should  be  organized  as  men  are  or- 
ganized; and  the  question  will  arise  whether  it  is  better  policy 
to  aim  at  giving  them  an  organization  of  their  own  or  at  pro- 
curing their  admission  to  the  existing  workmen's  organizations."  ^* 

Influences  Affecting  Women  in  Industry*' 


Promotive  Factors 

Restrictive  Factors 

Causes   affecting 
demand  for 
women's  labor. 

i.  Need  for  increased  pro^ 
duction. 

ii.  Death  and  disablement 
of  many  male  workers 
resulting  in  a  scarcity  of 
labor,  and  in 

i.  Destruction  of  capital 
and  consequent  restric- 
tion of  employment. 
Temporary  nature  of  war 
work. 

ii.  Return  of  some  unknown 
proportion  of  men  from 
the  war  to  ordinary  em- 
ployment, resulting  in 
lessened  demand  for 
women,  and  in  an 

Causes    affecting 
the  supply. 

iii.  Restricted    prospect   of 
marriage     for     women; 
greater  need  to  earn. 

iv.  Increased  taxation;  de- 
creased emplo3'ment  on 
luxuries;    more    women 
available  for  industry. 

iii.  Increased  marriage  rate; 

possibly     an     increased 

birth  rate, 
iv.  Married   women  leaving 

work  after  stress  of  war. 

Socio- 
psychological. 

V.  Women  desiring  to  re- 
tain   the    footing    they 
have  won. 

v.  Increased  solicitude  for 
children. 

**  Parker  of  Waddington,  Some  After-War  Problems :  Quarterly  Re- 
view, London,  April,  1916. 

"B.  L.  Hutchins,  The  Position  of  the  Woman  Worker  After  the 
War :  Economic  Journal,  London,  June,  1916. 


THE  LABOR  PROBLEM  IN  ENGLAND     m 

In  a  study  on  the  employment  of  women  after  the  war,  the 
Committee  on  Outlets  for  Labor  After  the  War  suggests  the 
following  means  to  reduce  the  ill  effects  of  a  supply  of  female 
labor  in  excess  of  industrial  requirements.^^ 

(i)  Extensive  migration  of  women,  to  accompany  men  to  the 
colonies  or  back  to  the  land. 

(2)  Equal  pay  for  equal  work,  and  a  minimum  wage  for  un- 
skilled labor,  male  or  female. 

(3)  Withdrawal  of  widows,  with  young  children,  from  industry 
by  an  adequate  pension  scheme,  cind  restricting  home  work. 

(4)  A  reconsideration  of  the  half-time  system, 

(5)  Better  technical  training  for  juveniles. 

(4)  Oj  Youths.  "A  considerable  number  of  youths  have  dur- 
ing the  war  been  promoted  to  work  previously  done  by  men  and 
diverted  to  specialized  processes  of  a  new  kind.  In  demobilizing 
them  several  factors  should  be  considered.  In  the  first  place, 
it  should  be  decided  which  occupations  are  suitable  and  which 
are  not  suitable  for  young  workers.  Secondly,  those  occupations 
into  which  it  is  agreed  to  admit  youths  should  be  regulated  so  as 
to  protect  them  from  overstrain.  Thirdly,  all  youths  under  18 
should  be  required  to  attend  part-time  continuation  schools  dur- 
ing the  daytime."  ^^ 

is)  Oj  War  Materials. 

The  Restoration  oj  Trade  Union  Conditions 

(i)  Nature  oj  Suspended  Rights  oj  Labor.  "Second  only  to 
the  problem  of  demobilization  is  the  problem  of  the  restoration 
of  trade-union  conditions."  ^®  To  understand  the  nature  of  the 
problem,  let  us  briefly  review  the  rights  enjoyed  by  labor,  which 
were  temporarily  suspended.  At  a  conference  on  March  17,  1915, 
with  Mr.  Lloyd  George,  Chancellor  of  the  Exchequer,  and  Mr. 
Runciman,  President  of  the  Board  of  Trade,  the  leading  labor 

""Credit,  Industry,  and  the  War,"  p.  93,  1915. 

*'  Arthur  Greenwood,  "The  Reorganization  of  Industry,"  pp.  32,  33. 
See  also  Employment  for  British  War  Widows :  Commerce  Reports, 
Jan.  8,  1918. 

"Sidney  Webb,   "Restoration  of  Trade  Union   Conditions,"  p.  7. 


112    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

organizations  entered  into  an  agreement.  There  were  repre- 
sented (i)  the  Parliamentary  Committee  of  the  Trade  Union 
Congress  and  the  General  Federation  of  Trade  Unions;  (ii)  ten 
engineering  unions,  including  steam-engine  makers,  machine  work- 
ers, toolmakers,  patternmakers,  iron  founders,  iron  molders,  black- 
smiths, and  workers  in  the  electrical  trades;  (iii)  four  shipbuild- 
ing unions,  including  boilermakers,  shipwrights,  and  sheet-iron 
workers;  (iv)  two  iron  and  steel  trades  unions;  (v)  three  unions 
in  other  metal  trades;  (vi)  seven  wood-workers'  unions,  includ- 
ing carpenters,  joiners,  house  and  ship  painters  and  decorators, 
woodcutting  machinists,  cabinetmakers,  and  workers  in  the  fur- 
nishing trades;  (vii)  three  laborers'  unions;  (viii)  two  transport 
workers'  unions;  (ix)  one  woolen  workers'  union;  and  (x)  one 
boot  and  shoe  operatives'  union.  The  parties  bound  by  the 
agreement  were  the  Government,  all  trade  unions  subscribing 
thereto,  and  employers  in  whose  establishments  the  trade  unions 
sanctioned  the  agreement.     Its  terms  follow: 

(i)    Preveniion  of  strikes. 

{a)  During  the  war  there  shall  in  no  case  be  any  stoppage  of 
work  upon  equipments  of  war. 

(&)  To  prevent  friction  and  to  keep  dififerences  from  arising, 
all  changes  of  working  conditions  shall  be  preceded  by  notice  to 
the  men  and  by  an  opportunity  for  conference. 

(c)  Differences  as  to  wages  or  conditions  of  employment  aris- 
ing out  of  the  war  shall  be  settled  by  the  prescribed  method. 

{d)  Questions  not  arising  out  of  the  war  should  not  be  made 
the  cause  of  stoppage  during  the  war  period. 

(ii)  Removal  of  restrictions  on  output. 

(a)  In  general,  all  trade  unions  shall  submit  to  changes  neces- 
sary for  accelerating  the  output  of  munitions. 

(&)  In  particular,  they  shall  permit  (i)  unrestricted  individual 
production,  (2)  dilution  of  skilled  labor  by  the  introduction  of 
female,  semi-skilled,  or  unskilled  labor. 

(iii)   Concessions  to  the  trade  unions. 

(a)  The  employers  shall  give  undertakings  to  the  Government 
that  the  removal  of  restrictions  on  output  shall  prevail  only  for 
the  period  of  the  war,  and  that  pre-war  conditions  shall  be 
restored  after  the  war. 

(b)  A  record  of  departures  from  pre-war  conditions  shall  be 
kept  and  "shall  be  open  for  inspection  by  the  authorized  repre- 
sentatives of  the  Government." 


THE  LABOR  PROBLEM  IN  ENGLAND  113 

(c)  The  customary  district  rates  for  the  work  shall  be  paid  to 
female,  semi-skilled,  or  unskilled  labor  used  to  dilute  the  labor 
supply. 

(d)  Priority  in  post-war  readjustments  shall  be  granted  to  men 
in  employment  at  the  time  of  the  signing  of  the  agreement  or  to 
men  who  have  left  their  employment  to  join  the  military  or  naval 
forces. 

The  Amalgamated  Society  of  Engineers  signed  this  agreement 
only  after  the  inclusion  of  clauses  under  which  the  Government 
would  limit  the  profits  to  result  from  the  relaxation  of  trade- 
union  restrictions  so  that  the  benefits  would  accrue  to  the  State 
and  not  to  private  capital.  Other  terms  of  the  supplementary 
agreement  are  to  the  effect  that  the  relaxation  of  trade  practices 
contemplated  in  the  agreement  relates  solely  to  work  done  for 
war  purposes  during  the  war  period,  and  the  Government  will 
undertake  to  use  its  influence  to  secure  restoration  of  previous 
conditions  in  every  case  after  the  war.^^ 

(2)  Pledges  to  Restore  Trade-Union  Conditions.  The  pledge 
for  the  restoration  of  trade-union  conditions  was  given  time  and 
again  by  almost  every  minister  representing  all  the  parties  in  the 
Coalition  Cabinet.  "In  short,  as  Mr.  Lloyd  George  said  on 
June  23,  1915,  the  abrogation  [of  these  conditions]  'during  the 
war'  was  agreed  to,  on  the  honor  and  pledge  of  the  Nation  that 
things  would  be  restored  exactly  to  the  position  they  were  in 
before  the  suspension  of  all  these  restrictions  on  practices  that 
interfere  with  the  output  of  raw  materials  (House  of  Commons, 
June  23,  1915).  'We  promised,'  said  the  present  prime  minister 
to  the  Trade  Union  Congress  on  September  9,  191 5,  'that  we 
would  give  a  guaranty  that  at  the  end  of  the  war  the  pre-war 
conditions  would  be  restored.  How  have  we  done  that?  We 
have  done  it,  not  merely  by  solemn  declarations  on  the  part  of 
the  Government,  but  we  have  embodied  them  in  an  act  of  Parlia- 
ment. We  have  a  statutory  guaranty  carried  unanimously  by 
Parliament,  by  men  of  all  parties,  all  sorts  and  conditions  of  men. 
They  are  all  in  it,  and  they  are  all  committed  to  that  guar- 
anty.' "  " 

"W.   J.   Lauck,   "British   Industrial    Experience   During   the   War," 
Ft.  Ill,  pp.  991,  992,  995,  996. 
**  Sidney  Webb,  "Restoration  of  Trade  Union  Conditions,"  p.  23. 


114    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

(3)  The  Difficulties,  the  Dangers,  and  the  Opportunities  of 
Restoration.  In  spite  of  all  these  solemn  pledges,  a  literal  return 
to  pre-war  conditions  is  humanly  impossible.  If  Parliament,  the 
Ministers,  the  employers,  and  the  Nation  had  pledged  themselves 
to  unscramble  an  egg  or,  to  use  a  closer  analogy,  to  unhatch  a 
chick  and  put  it  back  into  its  shell,  the  world  would  be  as  skep- 
tical with  regard  to  the  possibility  of  this  performance  as  the 
English  workmen  apparently  are  with  regard  to  the  feasibility  of 
reducing  a  higher  staged  and  more  complicated  industrial  organ- 
ization to  its  former  simple  and  less  efficient  state.  The  trans- 
formations of  industry  and  the  resultant  change  in  methods 
were  catalogued  by  Mr.  Webb.*^ 

(a)  The  Transformation  of  Industry.  "The  Government  re- 
quirements gradually  transformed  their  factories  and  workshops, 
not  only  as  regards  buildings  and  machinery,  but  also  as  regards 
the  hours  of  labor,  mealtimes,  overtime,  and  holidays;  the  meth- 
ods and  rates  of  remuneration;  the  conditions  of  engagement  and 
suspension  and  of  dismissal;  the  disciplinary  code,  with  its  fines 
and  other  penalties;  the  relation  of  the  operatives  to  the  ma- 
chines and  of  the  various  grades  and  classes  of  operatives  to 
each  other;  and,  above  all,  as  regards  the  grades,  classes,  ages, 
trades,  and  sex  of  the  operatives  employed.  It  is  suggested  that 
no  such  sweeping  transformation  in  the  organization  of  British 
industry — a  transformation  occurring  not  in  any  one  trade 
only  but  simultaneously  in  nearly  all  branches  of  manufacture — 
has  taken  place  since  what  is  known  as  the  Industrial  Revolu- 
tion of  1780-1825." 

(6)  The  Industrial  Changes.  "We  shall  realize  better  what  is 
the  character  of  the  'trade-union  conditions'  that  have  been 
suspended  if  we  state  the  changes  in  the  organization  and  man- 
agement of  the  factory  that  their  abrogation  has  permitted. 

"(i)  Changed  the  processes  of  manufacture,  notably  so  as  to 
enable  work  formerly  done  by  skilled  craftsmen  to  be  done  by 
women  or  laborers. 

"(ii)  Introduced  new  and  additional  machinery  with  the  same 
object. 

"(iii)  Engaged  boys,  women,  and  unapprenticed  men  in  work 
or  on  processes  formerly  done  by  skilled  craftsmen. 

**  "Restoration  of  Trade  Union  Conditions,"  pp.  26,  2i- 


THE  LABOR  PROBLEM  IN  ENGLAND  115 

•*(iv)  Increased  the  proportion  of  boys  to  men. 

"(v)  Substituted  piecework  and  bonus  systems  for  time  wages; 
and  that  without  any  printed  and  collectively  agreed  to  piece- 
work list  of  prices,  or  other  protection  against  a  future  cutting 
of  rates. 

"(vi)  Increased  the  hours  of  labor,  sometimes  refusing  also 
any  satisfactory  addition  for  overtime,  night  duty,  and  Sunday 
work. 

"(vii)  Suppressed  demarcation  disputes  and  ignored  all  claims, 
whether  to  kinds  of  work  or  particular  jobs,  of  particular  unions, 
particular  grades,  particular  sets  of  craftsmen,  or  a  particular 
sex." 

(c)  Dangers  of  a  Sham  Restoration.  To  the  dangers  of  a 
sham  restoration,  as  Mr.  Webb  calls  it,  English  labor  is  keenly 
alive.  Such  a  restoration  could  have  only  adverse  results,  for 
the  employer,  for  the  workman,  and  for  the  State.  But  grave  as 
are  the  potential  dangers  of  a  sham  restoration,  the  opportunities 
for  permanent  good  inherent  in  an  equitable  adjustment  easily 
compensate  for  them.^-  "This  gives  the  industrial  world  an  oppor- 
tunity to  overhaul  its  wages  and  organization  and  make  a  new 
agreement  as  to  wages,  conditions  of  employment,  etc.  Work- 
people have  something  substantial  to  bargain  with,  and  if  em- 
ployers act  wisely  a  great  advance  may  result."  " 

"The  departure  from  rule  for  the  duration  of  the  war  brings 
a  new  hope  of  social  and  industrial  progress  in  the  near  future. 
For  though  it  is  the  workpeople's  undoubted  right  to  have  the 
old  trade-union  safeguards  reimposed,  it  by  no  means  follows 
that  they  will  universally  desire  the  restoration  or  continuance 
of  them  in  their  old  form.  They  will  not  be,  if  it  is  demonstra- 
bly not  in  their  interests;  and  there  must  be  numerous  cases  in 
which  it  will  not  be,  and  numerous  other  cases  in  which  greater 
advantages  can  be  offered  alternatively.  A  great  opportunity 
that  may  never  recur  is  before  us  of  so  harmonizing  conflicting 
interests  that  class  antagonism  is  transformed  into  class  al- 
liance." ** 

"A.  W.  Kirkaldy,  "Labor,  Finance,  and  the  War,"  p.  51,  1916. 
*'  Prof.  S.  J.  Chapman,  "The  State  and  Labor,"  chapter  in  "After- 
War  Problems,"  p.  143,  1917. 
"Idem,  p.  148. 


ii6     LABOR  AND  RECONSTRUCTION  IN  EUROPE 

(d)  A  Typical  Case — Women  in  Industry  After  the  War. 
How  the  restoration  of  trade-union  conditions  is  reconciled  with 
the  continued  participation  of  women  in  industry  is  well  illus- 
trated in  a  report  on  "Women  in  the  Engineering  Trades,"  by 
Barbara  Drake.*^  This  report  recommends  J,hat  the  men  union- 
ists cooperate  with  women  rather  than  compete  with  them.  Trade 
unionists  should  not  attempt  to  oust  women  from  industry  but 
rather  aid  in  organizing  them,  so  as  to  take  out  of  employers' 
hands  a  whip  over  organized  labor. 

"The  proposals  made  to  safeguard  the  trade-union  position 
against  the  admission  of  female  labor  in  the  engineering  trades 
are  summed  up  as  follows: 

"(i)  The  securing  of  the  rates  customarily  paid  for  the  job 
on  work  not  recognized  as  women's  work  before  the  war — 'one 
rate  for  one  job,'  or  'equal  pay  for  equal  work.' 

"(2)  The  securing  of  an  adequate  minimum  wage  for  all 
women  employed  in  the  engineering  trades,  equivalent  in  real 
wages  to  the  minimum  subsistence  wage  for  adult  women. 

"(3)  The  securing  of  a  minimum  education  for  all  young 
persons  under  18  years  of  age,  to  insure  the  welfare  of  children 
and  to  reduce  competition  of  juvenile  labor. 

"(4)  The  securing  of  adequate  provision  against  unemploy- 
ment. 

"(a)  Half-time  shifts  for  young  people  under  18. 

"(6)  When  the  index  of  local  unemployment  reaches  a  cer- 
tain point,  the  education  authorities  shall  retain  at  school  for 
whole-time  education  with  maintenance  a  proportionate  number 
of  young  persons. 

"(c)  As  an  extreme  measure,  adequate  maintenance,  with  the 
option  of  training,  shall  be  provided  for  all  unemployed  women 
for  whom  no  places  are  available  in  their  own  trades,  pre-war  or 
present,  at  the  employment  exchanges. 

"(5)  The  protection  of  female  and  immature  labor  from  occu- 
pational injury. 

"(a)  A  reduction  in  the  legal  hours  of  work  to  48  a  week 
after  the  war. 

*'  Report  based  on  an  inquiry  by  a  joint  committee  of  the  Fabian 
Research  Department  and  the  Fabian  Women's  Group,  London,  George 
Allen  &  Unwin,  1917. 


THE  LABOR  PROBLEM  IN  ENGLAND  117 

"(fi)  That  the  number  of  women  factory  inspectors  and  med- 
ical officers  attached  to  the  factory  department  shall  be  increased. 

"{c)  That  routine  medical  inspection  and  treatment  shall  be 
extended  to  all  young  persons  under  18  years  of  age. 

''(d)  That  a  departmental  inquiry  shall  be  undertaken  by  the 
responsible  Government  departments  into  the  effects  of  occupa- 
tion on  maternity. 

"(e)  That  the  appointment  of  a  forewoman  or  woman  super- 
visor shall  be  compulsory  in  factories  or  workshops  employing 
young  girls  under  21  years  of  age. 

"(6)  The  securing  of  a  direct  share  to  the  worker  in  the  con- 
trol of  his  or  her  working  life." 

Women  are  to  be  represented  on  the  welfare  committee  in  all 
establishments  in  which  they  are  employed. 

As  trade-union  conditions  cannot  be  restored  literally,  some 
substitute  rights  equivalent  to  those  waived  are  being  demanded. 
It  is  probable  that  the  solution  of  the  problem  lies  in  this  direc- 
tion. 

Complete  Schemes 

In  addition  to  plans  for  demobilization  and  for  the  restoration 
of  trade-union  conditions,  there  have  been  several  complete 
schemes  covering  the  immediate  after-war  needs  and  dealing 
with  the  many  emergencies  that  will  arise.  Such  complete 
schemes  have  been  put  forward  by  the  Liverpool  Fabian  Society 
and  by  the  Garton  Foundation. 

(i)  Of  the  Liverpool  Fabian  Society. '^^  (c)  The  Immediate 
After-War  Situation.  Sidney  Webb,  in  his  report  presenting 
the  immediate  after-war  situation,  anticipates  a  lengthened  dis- 
location of  the  labor  market;  a  sudden  collapse  of  the  industries 
incidental  to  the  war;  the  competition  of  the  discharged  soldiers 
and  sailors  with  the  disbanded  munition  workers  for  employ- 
ment; lack  of  capital;  high  rates  of  interest;  dear  food;  and 
rising  rents.  "Unless  very  drastic  action  is  taken  wages  will 
come  down  with  a  run;  the  result  will  be  great  anxiety  and 
suffering,   certain   deterioration   in   physique   and   character,   a 

""Industrial  Conditions  After  the  War:  The  Place  of  the  Labor 
Exchange,"  pp.  7-9,  Liverpool  Fabian  Society,  1916. 


ii8    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

terrible  time  for  women  and  children,  degradation  of  the  standard 
of  life,  and  injury  to  trade  unions." 

(b)  The  Problems  of  the  Future.  Any  scheme  to  meet  imme- 
diate conditions  will  have  to  consider  the  following  six  points: 

(i)  The  policy  to  be  adopted  in  regard  to  the  manner  of 
the  release  of  soldiers  and  munition  workers. 

(ii)  The  adjustment  of  rates  of  wages  and  the  maintenance 
of  the  standard  of  living. 

(iii)  The  question  of  the  employment  of  women  in  view  of 
their  recent  incursion  into  the  industrial  field. 

(iv)   Workshop  practice. 

(v)  The  training  of  disabled  soldiers  and  sailors. 

(vi)  Special  provision  for  young  men  whose  vocational  train- 
ing or  apprenticeship  has  been  interrupted  by  the  war. 

(c)  Remedial  Measures  Already  Provided  For.  To  meet  this 
crisis  the  report  indicates  that  the  Government  proposals  include 
the  following: 

(i)  The  discharged  soldier  is  to  be  sent  to  the  labor  exchange. 
He  is  also  for  a  period  of  say  twelve  months  to  come  under  the 
unemployment  section  of  the  National  Insurance  Act — that  is, 
he  would  be  entitled  to  7  shillings  per  week  while  unemployed, 
payable  through  the  labor  exchange.  The  disabled  soldier  is 
also  to  be  sent  home  on  usual  pay  and  separation  allowance;  to 
be  given  free  railway  ticket;  and  to  be  paid  a  gratuity  of  prob- 
ably £5  or  £6  for  a  private. 

(ii)  The  local  committees  are  to  find  work  for  partly  disabled 
soldiers  and  for  soldiers'  widows. 

(iii)  The  Prince  of  Wales'  Fund  is  to  deal  with  cases  of  dis- 
tress. 

(iv)  The  Distress  Committees  under  the  Unemployed  Work- 
men Act,  1905,  are  to  be  revived. 

(v)  Finally,  there  would  be  the  Poor  Law,  with  the  "Stone- 
yard"  and  the  Workhouse. 

(d)  Preventive  Measures  Recommended.  Mr.  Webb  calls 
upon  the  Government  to  take  a  larger  view  of  its  responsibilities 
in  this  matter  and  suggests  several  steps  which  labor  itself  should 
take  to  meet  the  crisis — for  example: 

(i)  The  formation  of  special  local  committees  by  the  Trades 
Councils,  with  the  following  functions: 

(x)  To  consider  what  is  likely  to  happen  in  their  own  town — 


THE  LABOR  PROBLEM  IN  ENGLAND  119 

how  many  soldiers  will  come  back  and  how  many  munition 
workers  will  be  discharged,  etc. 

(3;)  To  cooperate  with  the  Prince  of  Wales'  Fund,  the  Statu- 
tory Pensions  Authority,  the  Distress  Committee,  and  the  Board 
of  Guardians. 

(z)  To  press  the  Town  Councils  to  put  in  hand  plans  for  pub- 
lic works. 

(ii)  That  trade  unions  should  tax  their  members  in  order  to 
increase  their  funds. 

(iii)  That  the  War  Office  should  gradually  disband  the  army 
and  notify  the  labor  exchange  in  advance  before  every  soldier 
is  released,  so  that,  if  possible,  a  job  may  be  waiting  for  him  at 
his  home  town.  Also,  if  desired,  similar  information  should  be 
sent  to  the  man's  trade  union. 

(iv)  That  precisely  similar  arrangements  should  be  made  by 
the  Minister  of  Munitions,  in  respect  to  all  munition  workers. 

(v)  That  the  Board  of  Trade  should  at  once  extend  unemploy- 
ment insurance  to  all  trades. 

(vi)  That  the  Government  should  make  a  declaration  in  favor 
of  maintaining  the  standard  rate  of  wages. 

(2)  Of  the  Carton  Foundation. ^'^  The  Memorandum  of  the 
Carton  Foundation  is  a  survey  of  the  British  labor  situation, 
treating  of  the  pre-war  conditions,  the  effects  of  the  war  on  labor, 
the  immediate  after-war  problems,  or  transition,  and  the  long- 
range  or  reconstruction  policies.  It  is  the  result  of  an  inquiry 
among  employers  and  laboring  men.  The  sections  on  transition 
problems  are  quoted  herewith. 

{a)  Finding  Jobs.  "It  has  been  shown  that  the  probable 
cause  of  unemployment  after  the  war  will  be,  not  the  lack  of  a 
demand  for  labor,  but  the  difficulty  of  bringing  together  the 
workingman  and  the  job.  It  should  be  possible  for  the  Govern- 
ment to  obtain  a  complete  or  approximately  complete  register  of 
the  previous  occupations  and  capacities  of  the  men  to  be  dis- 
banded. 

"So  far  as  military  exigencies  will  permit,  it  is  very  desirable 
that  workers  for  whose  services  there  is  an  assured  need  should 
be  the  first  to  be  disbanded,  and  that  an  early  discharge  should 
be  given  to  those  for  whom  situations  are  actually  waiting.  Above 
all,  it  is  vitally  necessary  that  the  preliminary  work  of  investiga- 
"  Memorandum  of  the  Garton  Foundation :  or.  cit.,  pp.  33-40,  49. 


120    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

tion  and  the  creation  of  machinery  should  be  pushed  rapidly- 
forward,  in  order  that  there  may  be  no  delay  or  uncertainty  in 
taking  action  when  the  time  comes  for  disbandment.  This  mar- 
gin of  unemployment  could,  however,  be  largely  reduced  if  not 
extinguished  by  State  and  municipal  expenditure  upon  works  of 
definite  public  utility.  It  should  also  be  confined  as  far  as  pos- 
sible to  undertakings  of  a  productive  nature  or  connected  with 
the  restoration  of  the  national  plant." 

(b)  Exodus  from  War  Industries.  "The  problem  of  providing 
peace  employment  for  those  who  have  acted  during  the  war  as 
stop-gap  and  emergency  workers  will  be  of  less  magnitude  than 
that  of  reinstating  the  returned  soldiers;  but  it  will  none  the  less 
be  a  formidable  one. 

"The  great  majority  of  these  have  left  other  emplojonents, 
either  because  trade  was  slack  in  their  own  line  or  because  of 
the  higher  remuneration  or  greater  attractiveness  of  war  work. 
Most  of  those  who  have  done  so  may  be  expected  to  gravitate 
back  to  their  former  occupations;  but  not  all  will  find  it  pos- 
sible to  gain  immediate  reinstatement.  A  large  section  consists 
of  married  women,  more  particularly  of  women  whose  husbands 
are  with  the  colors,  who  have  returned  to  industry  during  the 
war.  The  majority  of  these  will  doubtless  return  to  domestic 
life;  but  many  of  them  may  be  compelled  to  continue  as  wage 
earners  or  may  desire  to  do  so.  A  further  section  consists  of 
girls  who  would  in  the  normal  course  have  entered  industry  dur- 
ing the  period  of  the  war  and  whose  circumstances  will  certainly 
require  them  to  seek  other  paid  occupations  when  their  war 
emplo5Tnent  has  come  to  an  end.  A  number  of  these  are  young 
women  who  would  not,  in  the  ordinary  course,  have  sought  paid 
employment.  Here  again  it  is  probable  that  a  certain  number 
will  withdraw  from  industry  when  the  national  emergency  is 
passed,  but  that  a  large  number  will  remain  as  wage  earners, 
either  from  necessity  or  from  preference.  There  are  also  a  con- 
siderable number  of  [former]  domestic  servants,  some  of  whom 
will  desire  to  retain  the  greater  freedom  and  higher  remuneration 
of  their  new  occupations.  Such  women,  whether  they  have 
taken  the  place  of  enlisted  men  or  have  been  employed  on  muni- 
tion work,  will  present  a  difficult  problem." 

(c)  Teaching  Men  Trades.  "In  the  reinstatement  of  demo- 
bilized men  and  the  adjustment  of  labor  to  the  new  conditions, 


THE  LABOR  PROBLEM  IN  ENGLAND  121 

large  numbers  of  skilled  workers  may  find  themselves  compelled 
to  seek  employment  in  trades  for  which  they  have  not  been 
trained. 

"Of  less  economic  importance,  but  a  debt  of  honor  which  the 
Nation  must  not  forget  to  pay,  is  the  obligation  to  teach  men 
who  are  prevented  by  partial  disablement  from  following  their 
old  occupations  some  trade  within  their  present  capacity. 

''At  the  same  time,  it  is  essential  that  without  prejudicing  the 
requirements  of  national  defense,  we  should  act  promptly  and 
vigorously  in  switching  off  munition  work,  scrapping  what  is 
half  done  and  readapting  our  industrial  plant  to  the  uses  of 
peace." 

(d)  Assuring  of  Decent  Wages.  "Since  the  cost  of  living  has 
risen  and  will  remain  high,  this  will  involve  a  demand  for  pro- 
portionately increased  wages.  The  fixing  of  minimum  rates  in 
certain  trades  has  also  had  a  stimulative  effect  upon  workshop 
management  in  those  numerous  cases  where  the  methods  and 
organization  were  such  as  to  leave  room  for  an  improvement  out 
of  which  the  increased  labor  charge  could  be  recouped." 

(e)  Industrial  Friction.  "Whatever  emergency  measures  may 
be  adopted,  the  avoidance  of  friction  depends  upon  an  agree- 
ment between  labor,  management,  and  capital  as  to  the  future 
organization  of  industry.  Such  an  agreement  must  be  based 
on  frank  recognition  of  the  existing  grievances  of  all  parties 
and  can  be  attained  only  by  bringing  home  to  the  minds  of 
each  class  the  dangers  arising  from  conflict  and  the  advantages 
to  be  gained  by  cooperation.  The  possibility  of  such  an  agree- 
ment is  discussed  later."  ** 

LONG-RANGE    LABOR   POLICIES 

A  Point  of  View 

In  England  "prophecy  about  industrial  development  after  the 
war  has  become  a  popular  pastime.  Professors  and  preachers, 
literary  men  and  business  men,  poets  and  journalists — all  have 
their  schemes  for  a  reconstructed  world  of  labor.  Some  of  them 
carry  us  beyond  the  point  where  they  can  be  of  help  for  social 
purposes.     To  prepare  with  too  much  attention  to  detail  for  a 

**See  "Long-range  Labor  Policies,"  Garton  Foundation. 


122     LABOR  AND  RECONSTRUCTION  IN  EUROPE 

distant  future  that  may  never  come  into  being  is  unwise.  That 
is  the  weakness  of  much  idealist  literature  about  the  coming 
development  of  society.  But  if  it  is  unwise  to  rush  too  far  in 
advance  of  social  progress,  it  is  certainly  folly  not  to  be  ready 
for  the  next  step.  It  is  useless  to  expect  a  sudden  jump  from 
the  present  order  of  things  into  a  well-ordered  state.  Society, 
however,  will  move.  The  social  thinker  must  therefore  be  at 
hand  to  smooth  out  difficulties  and  prepare  the  way  for  the  next 
advance.    He  must  see  society  'steadily  and  see  it  whole.'  "  ^^ 

"The  economic  system,  which  has  been  forced  by  the  strain 
of  war  to  make  itself  plastic,  should  be  prevented  from  harden- 
ing again  into  rigid  forms,  if  possible.  Its  habit  has  hitherto 
been  that  of  a  lobster — to  grow  a  shell,  discard  it  when  it  be- 
comes unbearably  tight,  and  then  grow  another.  The  ideal  to 
aim  at  is  continuous  plasticity  under  working  agreements  which 
can  be  modified  as  need  arises,  seeing  that  schemes  suited  to 
all  the  features  o'  an  unforeseen  future  cannot  possibly  be  de- 
vised.^° 

While  the  man  in  the  street  may  be  dumfounded  by  the  pres- 
ent chaos,  the  student  of  history  applies  its  lessons. 

"In  the  economic  field  there  were  in  England  three  powerful 
tendencies  at  work  at  the  outbreak  of  the  war: 

"(i)  The  economic  individualism  that  in  the  early  nineteenth 
century  had  provided  reformers  with  ideas  on  a  program  was 
now  the  watchword  of  the  conservative  opposition  to  change. 

"(2)  The  sjmdicalist  tendency  to  reduce  the  responsibilities 
of  the  State  as  far  as  possible  and  to  concentrate  control  in  the 
hands  of  producers'  groups. 

"(3)  The  State  socialism,  most  clearly  outlined  in  the  policies 
of  the  Fabian  Society. 

"Never  since  the  dawn  of  history  have  we  seen  the  State  so 
manifestly  imposing  its  will  and  its  authority  on  the  community. 
Never  has  there  been  less  opposition  to  its  control.  After  the  war 
it  will  possess  almost  unlimited  authority,  because  not  only  will 

*'  W.  H.  Pringle,  "The  State  and  Industrial  Control,"  chapter  in 
"The  Industrial  Outlook,"  a  symposium,  edited  by  H.  Sanderson  Fur- 
niss,  pp.  356,  357,  London,  1917. 

"  Prof.  S.  J.  Chapman,  "The  State  and  Labor,"  chapter  in  "After- 
War  Problems,"  a  British  symposium,  edited  by  C.  H.  Dawson,  p.  14^. 


THE  LABOR  PROBLEM  IN  ENGLAND  123 

it  have  tested  the  extent  of  power  it  may  use,  but  it  will  have 
the  prestige  of  having  guided  the  community  through  stupendous 
dangers  to  safety,  honor,  and  peace.  Still  further,  if  the  power 
of  the  State  has  grown  during  the  war,  the  need  for  its  authority 
will  not  be  less  but  indefinitely  greater  at  the  conclusion  of  peace, 
for  only  the  State  can  undertake  the  peace  problems,  and  only 
the  State  is  capable  of  equipping  itself  from  crown  to  foot  in 
the  shining  armor  of  economic  organization."  ^^ 

(i)  The  Avenues  of  Approach.  In  attempting  to  solve  the 
labor  problem  in  England,  students  and  spokesmen  have  attacked 
it  from  various  angles.  To  some  it  is  a  question  in  economics; 
to  others  a  matter  of  politics;  and  to  a  third  group  a  problem  of 
sociology.  Mr.  Gossling,  President  of  the  Trade  Union  Con- 
gress for  19 1 6,  calls  for  copartnership  of  labor  and  asks  for  the 
right  on  its  behalf  to  a  voice  in  the  details  of  management,  work- 
shop rules,  hours  of  labor,  and  regulations  of  the  foremen.  Sim- 
ilarly, another  speaker  at  this  congress,  Mr.  Nevill  Chamberlin, 
ex-Mayor  of  Birmingham,  insists  that  labor  should  be  granted 
an  insight  into  the  management  of  the  business.^^  The  workers' 
demand  for  democratic  control  is  not  a  demand  for  a  voice  in 
the  business,  but  for  control  over  the  conditions  under  which 
their  own  daily  work  is  done.  It  is  a  demand  for  control  over 
one  side  of  the  industrial  process,  but  that  the  most  important 
side,  because  it  is  the  human  side.^^ 

Lord  Milner,  again,  emphasizes  the  need  for  a  limitation  of 
the  return  to  capital  by  taxing  war  profits  and  suggests  that  the 
policy  be  continued  after  the  war  by  the  State,  so  as  to  contrib- 
ute a  portion  of  the  profits  so  earned  to  the  workmen  engaged  in 
the  particular  industry  concerned.  The  State  should  appear  in 
all  future  transactions  between  labor  and  capital  as  a  third  part- 
ner.*^* 

(2)  Steadying  Real  Wages.  Other  authorities  emphasize  the 
incongruous  fluctuations  of  wages  and  prices,  so  that  real  wages 
often  decline  in  a  period  of  rising  nominal  wages.    To  Prof.  S.  J. 

"  W.  H.  Pringle,  chapter  in  "The  Industrial  Outlook,"  pp.  376,  379. 
"Dampier  Weatham,  "The  War  and  the  Nation,"  p.   159,  1917. 
"Alfred  E.  Zimmcrn,  "The  Control  of  Industry  After  the  War,"  in 
the  Ruskin  College  Conferences. 
**  Farrow  and  Crotch,  "The  Coming  Trade  War,"  p.  149. 


124    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

Chapman  ^^  it  appears  that  prices  after  the  war  will  be  affected 
almost  at  once,  and  the  question  of  wages  will  be  most  trouble- 
some, as  prices  will  not  keep  constant  after  once  changing.  He 
therefore  suggests  a  simple  and  uniform  plan  which  would  treat 
all  classes  of  labor  alike — that  is,  to  provide  some  sliding  scale 
of  wages  based  on  an  agreed  index  of  commodity  prices  or  of  the 
cost  of  living  for  a  given  period.  This  plan  is  being  attempted 
in  the  textile  trades,^"  in  which  an  agreement  between  the  em- 
ployers and  workers  provides  that  all  previous  war  grants,  war 
bonuses,  and  war  wages  shall  be  regulated  by  the  increased  cost 
of  living.  The  index  figure  of  food  and  other  prices  will  be 
compared  with  those  of  July  i,  19 14.  Every  three  months  a 
joint  committee  will,  on  the  basis  of  the  latest  figures,  alter  the 
rate  of  wages  in  proportion  to  the  rise  or  fall  in  the  index  of 
commodity  prices  or  of  the  cost  of  living.  This  is  the  first  at- 
tempt on  a  large  scale  to  regulate  earnings  on  a  scientific  basis 
and  corresponds  in  operation  to  a  sliding  scale  of  wages  based 
on  the  selling  price  of  the  output  prevalent  in  English  coal  and 
steel  trades,  and  in  the  American  copper  mines.^^ 

{t^) Housing.  An  important  element  in  the  solution  of  the  labor 
problem  lies  in  better  housing — a  subject  of  which  in  this  country 
we  have  little  conception,  owing  to  the  lack  of  standards  of  com- 
parison. At  the  beginning  of  the  war  a  law  was  enacted  prohib- 
iting construction  work  of  all  kinds  in  the  United  Kingdom.  The 
ordinary  shortage  in  housing  facilities  was  thus  aggravated,  espe- 
cially in  the  working-class  sections.  A  committee  to  investigate 
the  subject,  appointed  by  the  National  Housing  and  Town-plan- 
ning Council,  reported  that  at  least  300,000  houses  for  the  working 
classes  should  be  built  by  the  State  in  England  and  Wales  alone. 
However,  this  will  do  no  more  than  to  make  up  for  the  shortage 
of  new  houses  due  to  the  restriction  on  building,  leaving  un- 

"  Op.  cit.,  p.  147. 

'°  Wages  Regulated  by  the  Cost  of  Living:  Textile  Mercury,  quoted 
in  Commerce  Reports,  Feb.  i,  1918  (transmitted  by  Consul  F.  D.  Hale). 

"  The  author  has  since  been  informed  by  Prof.  Irving  Fisher  that  the 
scheme  is  operative  in  the  United  States- — for  example,  by  the  Bankers 
Trust  Co.,  New  York  City ;  George  Worthington  Co.,  Cleveland ; 
Printz-Biederman  Co.,  Cleveland;  Kelley,  How,  Thompson  Co.,  Du- 
luth ;  Oneida  Community,  Oneida,  N.  Y. ;  and  Index  Visible,  Ne\v 
Haven,  Conn. 


THE  LABOR  PROBLEM  IN  ENGLAND  125 

touched  the  general  problem  of  overcrowded  dwellings  in  town 
and  coimtry.^^ 

(4)  Political  Solutions.  Those  who  are  accustomed  to  viewing 
human  relations  chiefly  from  the  political  angle  insist  upon  a 
readjustment  of  the  basis  of  political  representation.  For  in- 
stance, the  author  of  "Elements  of  Reconstruction"  ^^  believes 
in  discarding  local  reference  in  politics  and  substituting  occupa- 
tional constituencies.     He  says: 

"For  a  large  and  increasing  number  of  citizens  in  the  modem 
State  locality  has  only  a  residential  interest,  and  often  even  that 
is  transitory.  The  major  aspect  of  the  existence  of  such  citizens 
is  toward  some  trade  or  industry  or  occupation  of  national  dimen- 
sions. If  we  want  to  deal  in  any  satisfactory  way  with  the 
transport  workers,  medical  men,  or  electrical  engineers,  we  have 
to  go  outside  the  formal  constitution  altogether  and  discuss  mat- 
ters with  trade  and  professional  organizations  that  have  neither 
legislative  nor  administrative  power,  that  may  not  represent  the 
entire  profession  or  industry  concerned,  that  are  often  mere  or- 
ganizations for  restricting  work  and  raising  wages,  without  any 
tradition  or  sense  of  public  function.  If  we  want  to  get  a  clear 
statement  from  and  a  clear  understanding  with  the  mass  of  the 
people,  if  an  imperial  plan  is  ever  to  be  made  plain  and  accept- 
able, it  is  evident  that  we  must  be  prepared  for  a  rearrangement 
of  our  population  for  the  purposes  of  parliamentary  elections 
into  national  occupational  constituencies.  We  shall  have  the 
real  living  interest  of  the  country  in  direct  touch  with  legislative 
and  organizing  power,  and  the  vast  series  of  misunderstandings 
upon  falsely  conceived  issues  and  all  the  passion,  social  conflict, 
disorder,  and  delay  that  are  otherwise  inevitable  in  the  time  of 
great  reconstruction  ahead  will  be  cut  out." 

Radical  Policies 

The  unsettled  state  of  industry  has  given  radicals  the  chance 
to  attempt  to  apply  theories  of  an  ideal  order,  as  if  they  were 
the  elements  of  an  immediate  program.  The  impatience  of  this 
class  with  the  progressive  tendencies  which  are  leading  Old  Eng- 

"' British   Housing   Plans   for   After   the   War:    Commerce   Reports, 
Jan.  23,  1918. 
''London  Times,  1916,  pp.  80-82,  103-105. 


126    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

land  into  a  new  order  is  interesting  to  students  of  the  social 
sciences  and  to  liberals  everywhere.    A  typical  opinion  follows:  ^° 

"Capital  steals  the  thunder  of  collectivists  by  giving  the  form 
of  nationalization  of  industry  but  not  State  ownership  and  admin- 
istration. Again  capital  steals  the  thunder  of  the  National 
Guildsmen  by  giving  individual  workmen  some  sort  of  control 
but  not  trade-union  or  guild  control  of  industry." 

On  the  fundamental  theories  of  the  ideal  social  order  there 
may  be  Uttle  difference  of  opinion  between  Radical,  Liberal,  and 
Conservative.  The  distinctions  lie  in  the  practical  steps  which 
may  be  undertaken  immediately  in  the  attempt  to  realize  the 
concept.  However,  the  ideal  social  order  is  always  worth  bear- 
ing in  mind  as  an  ultimate  goal,  for  it  indicates  the  direction 
in  which  society  must  travel  in  its  necessarily  slow  and  laborious 
way. 

(i)  The  New  Social  Contract.  The  new  social  contract  has 
been  set  forth  by  the  guildsmen.^^  "The  factors  to  be  conciliated 
by  the  new  social  contract  are: 

"(a)  A  more  or  less  blind  revolt  against  degrading  conditions. 

"(b)  The  imperative  necessity  of  a  more  scientific  and  effi- 
cient system  of  production. 

"(c)  The  call  for  a  higher  spiritual  and  moral  life. 

"((f)   A  revivified  passion  for  freedom." 

(2)  The  New  Principle.  The  individual  worker  must  be  re- 
garded not  simply  as  a  "hand,"  a  decreasingly  important  adjunct 
to  the  industrial  machine,  but  as  a  man  among  men,  with  rights 
and  responsibilities,  with  a  human  soul  and  a  desire  for  self- 
expression,  self-government,  and  personal  freedom.  If  that  is 
secured,  it  will  not  be  long  before  energy  and  intelligence  enough 
are  applied  to  the  work  of  control  to  make  it  certain  that,  step 
by  step,  the  workers  will  win  their  way  to  that  complete  control 
of  industry  by  trade  unionism  in  conjunction  with  the  State 
which  is  the  ideal  of  National  Guildsmen. 

(3)  Definitions.  A  national  guild  is  the  combination  of  all 
the  labor  of  every  kind — administrative,  executive,  and  product- 
ive— in  any  particular  industry.     It  includes  those  who  work 

"^  G.  D.  H.  Cole,  "Self  Government  in  Industry." 

"  S.  G.  Hobson,  "Guild  Principles  in  War  and  Peace,"  pp.  26,  27, 
61,  102,  160,  London,  1917;  G.  D.  H.  Cole,  "Self  Government  in  In- 
dustry," pp.  5,  25,  115,  London,  1917. 


THE  LABOR  PROBLEM  IN  ENGLAND  127 

with  their  brains  and  those  who  contribute  labor  power.  Ad- 
ministrators, chemists,  skilled  and  unskilled  labor — everybody 
who  can  work — are  all  entitled  to  membership.  Management 
and  labor  must  join  hands;  harmony  must  be  evolved  out  of 
existing  chaos.  These  proposed  large  industrial  organizations 
are  "national  guilds."  The  trade  unions  must  form  the  bases 
of  these  national  guilds,  but  they  must  merge  into  the  greater 
bodies. 

The  fundamental  idea  of  the  guilds  is  that  they  shall  exercise 
full  control  over  labor  and  enjoy  complete  autonomy  in  all  indus- 
trial transactions. 

"The  time  has  come  for  the  trade  unions  to  reorganize  with  a 
view  to  embracing  every  worker  in  their  several  trades.  Every 
clause  in  their  constitution  that  excludes,  that  limits,  must  be 
swept  away,  as  you  would  clear  out  rotten  timber  from  an  old 
house." 

(4)  Same  Distinctions.  "The  collectivist  is  prepared  to  recog- 
nize trade  unionism  under  a  collectivist  State  regime.  But  he  is 
not  prepared  to  trust  trade  unionism,  or  to  intrust  it  with  the 
conduct  of  industry.  He  does  not  believe  in  industrial  self- 
government;  his  'industrial  democracy'  embodies  only  the  right 
of  the  workers  to  manage  their  trade  unions,  and  not  their  right 
to  control  industry.  The  National  Guildsman,  on  the  other  hand, 
bases  his  social  philosophy  on  the  idea  of  function.  In  the  indus- 
trial sphere  he  desires  not  the  recognition  of  trade  unions  by  a 
collectivist  State,  but  the  recognition  of  a  democratic  State  by 
national  guilds  that  control  industry  in  the  common  interest. 

"Industrial  unionism  is  a  strictly  proletarian  doctrine,  preach- 
ing the  class  war  and  demanding  the  complete  abolition  of  the 
State,  which  it  regards  as  a  capitalist  institution  destined  to  dis- 
appear with  the  capitalist  system.  Here  it  is  sharply  differen- 
tiated from  the  guild  socialist  view.  The  National  Guildsmen 
agree  with  the  industrial  unionists  in  demanding  the  direct  man- 
agement of  industry  by  the  workers — by  hand  or  brain — who 
are  employed  in  it;  and  they  agree  further  in  regarding  the 
possession  of  economic  power  as  the  essential  key  to  the  pos- 
session of  political  power.  They  seek,  however,  not  the  abolition 
but  the  democratization  of  the  State;  and  they  desire  a  system 
of  State  ownership  of  industry,  coupled  with  actual  management 
by  the  workers.     As  for  the  shop  stewards'  movement,  indus- 


128    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

trial  unionists  scorn  this  movement  as  a  compromise  with  the 
trade  unionism  of  to-day  and  maintain  the  policy  of  building 
up  an  entirely  new  organization  on  strictly  class  lines.  The  real 
purpose  of  the  shop  stewards'  movement  is  very  largely  to  secure 
an  element  of  direct  control  by  trade  unionists  over  the  work- 
shops. The  shop  stewards  have  aimed  at  building  up  a  system 
of  trade-union  works  committees  which  would  effectively  coordi- 
nate the  action  of  the  whole  body  of  trade  unionists  employed  in 
particular  factories  or  workshops.  Advanced  trade-union  opin- 
ion is  concentrating  upon  the  amalgamation  of  existing  trade 
unions,  upon  achieving  the  industrial  structure  and  linking  to- 
gether the  industrial  unions  into  large  combinations  such  as  the 
Triple  Alliance,  and  equally  upon  achieving  in  the  internal  or- 
ganization of  the  trade-union  movement  a  more  democratic  ma- 
chinery and  a  policy  more  inspiring  and  more  constructive."  ^^ 

(5)  The  Methods  of  the  Radical.  Although  guildsmen  are 
opposed  to  private  ownership,  backed  by  the  State,  assuming 
the  guises  of  Nationalism,  yet  national  control  brings  nearer  the 
goal  of  the  guild  idea,  or  the  nationalization  of  industry. 
However,  ownership  must  be  taken  out  of  private  hands. 

The  radical  is  opposed  to  joint  industrial  control  by  employer 
and  employed,  for  this  can  lead  only  to  a  continuous  compromise 
of  opposing  interests.  For  him  capitalism  must  be  completely 
displaced. 

"The  central  doctrine  at  work  in  all  the  principal  trade  unions 
at  the  present  time  is  the  doctrine  of  'control';  everywhere  the 
younger  generation  of  trade  unionists  is  preaching  the  view  that 
what  really  matters  is  not  merely  the  securing  of  improved  con- 
ditions inside  the  existing  industrial  system  but  the  changing  of 
the  whole  system  and  the  substitution  of  'industrial  self-govern- 
ment' for  the  present  'industrial  autocracy.'  In  framing  their 
policy  for  the  immediate  present  the  younger  trade  unionists 
have  always  in  mind  the  more  distant  future.  If  they  cannot 
overthrow  capitalism  to-day,  their  object  is  so  to  establish  their 
organization  and  so  to  direct  their  policy  as  to  make  themselves 
the  stronger  for  overthrowing  capitalism  when  the  time  comes."  ®- 

^  G.  D.  H.  Cole,  British  Labor  in  War  Time :  New  Republic,  June  r, 
1918. 


THE  LABOR  PROBLEM  IN  ENGLAND  129 

The  guild  ideal  aims  at  joint  control  by  the  guild  and  State, 
and  therefore  it  implies  that  the  trade  unions  should  reject  joint 
responsibility  with  employers  as  well  as  limitation  of  freedom. 
They  should  insist  upon  irresponsibility,  continuous  interference, 
and  unrestricted  independence.  Whatever  control  there  is  to  be 
should  be  exercised  not  by  a  joint  committee  of  employers  and 
employees  but  by  a  single  labor  committee,  which  is  organically 
connected  with  the  trade-union  organizations.  Not  joint  respon- 
sibility of  shop  committees,  but  collective  interference  is  the 
method  to  be  pursued  as  an  instrument  for  further  progress. 
Labor  should  not  tie  itself  up  with  any  profiteering  scheme.  For 
the  basic  question  is  **''  "whether  industry  is  to  continue  its 
development  along  the  lines  of  autocratic  control  from  above,  or 
whether  industrial  autocracy  is  to  be  displaced  by  the  industrial 
democracy  of  national  guilds.  The  immediate  policy  for  trade 
unionism  is  the  policy  of  guildsmen.  There  is  no  other  demo- 
cratic industrial  policy  in  the  field,  and  trade  unionism  must 
perish  unless  it  can  arm  itself  with  a  constructive  industrial 
policy." 

Immediate  Programs  of  Liberals 

Perilous  as  would  be  any  attempt  to  put  into  immediate  opera- 
tion the  well-meaning  but  untested  schemes  of  radicals,  the  labor 
situation  is  greatly  strengthened  by  the  fact  that  men  of  affairs 
in  the  Government  and  out  of  it,  as  well  as  balanced  labor  lead- 
ers, have  attempted  to  formulate  programs  that  are  capable  of 
being  put  into  effect  immediately.  These  programs  are  based 
upon  no  unrealizable  administrative  scheme,  they  assume  no  sud- 
den improvement  in  the  instruments  of  government,  they  presup- 
pose no  lapse  of  half  a  century,  and  they  ask  not  over  much 
of  human  nature.  These  programs,  arranged  in  the  order  of  their 
formulation,  are: 

(i)  The  resolution  adopted  by  the  Trade  Union  Congress, 
September  7,  19 16. 

(2)  The  Four  Guiding  Principles  laid  down  by  the  Garton 
Foundation. 

(3)  The  recommendations  of  the  Committee  on  Industrial 
Unrest  of  the  Section  of  Economic  Science  and  Statistics  of  the 
British  Association  for  the  Advancement  of  Science,  19 16. 

**  G.  D.  H.  Cole,  "Self  Government  in  Industry,"  p.  329. 


130  LABOR  AND  RECONSTRUCTION  IN  EUROPE 

(4)  "The  New  Charter"  of  Sidney  Webb. 

(5)  The  191 7  report  of  the  Committee  of  the  Section  of  Eco- 
nomic Science  and  Statistics  of  the  British  Association. 

(6)  The  recommendations  of  the  official  Committee  of  Inquiry 
into  Industrial  Unrest,  July  17,  191 7. 

(7)  The  Whitley  Report  drafted  by  a  sub-committee  of  the 
Reconstruction  Committee. 

(i)  The  Resolutions  oj  the  Trade  Union  Congress.^*  On 
September  7,  19 16,  the  following  resolution  was  adopted  by  the 
Trade  Union  Congress: 

"That  efforts  should  be  made  to  preserve  industrial  peace 
after  the  war,  and  that  the  Parliamentary  Committee  should  be 
instructed  to  approach  the  Government  and  the  Employers' 
Parliamentary  Association  with  the  object  of  discussing  terms 
that  would  secure  the  end  in  view,  for  a  period  of  three  years, 
such  terms  to  include  the  acceptance  of  the  following  proposals: 

"(fl)  Membership  in  a  trade  union  to  be  compulsory  upon  all 
workers. 

"(6)  Compulsory  48-hour  working  week  in  every  occupation. 

"(c)  Compulsory  minimum  wage  of  30  shillings  [about  $7.20] 
per  week  for  all  adult  workers. 

"{d)  No  reduction  of  present  wages  or  increase  in  working 
hours. 

"(e)  Complete  recognition  by  employers  of  trade  unions  and 
of  all  agreements  entered  into  between  the  unions  and  employers' 
associations. 

"(/)  State  employment  pay  for  men  and  women  out  of  work. 

"(g)  Settlement  by  unions  of  the  condition  of  women's  labor 
after  the  war." 

(2)  The  Report  oj  the  Carton  Foundation.^^  (a)  The  Rela- 
tion Between  Employers  and  Employed.  "The  interests  of  em- 
ployers and  employed  are  concurrent  as  regards  production  and 
only  partly  antagonistic  as  regards  distribution. 

"So  long  as  the  fundamental  interests  of  employers  and  em- 
ployed are  believed  to  be  purely  antagonistic,  production  and 
saving  will  be  hampered. 

"In  dealing  with  an  immediate  problem,  we  must  work  with 

"Alex.   Ramsay,   "Terms  of   Industrial   Peace,"  pp.   15,   16,  London. 
Constable  &  Company,  Ltd.,  1917. 
«'  Pp.  71,  72,  77,  78,  80-83. 


THE  LABOR  PROBLEM  IN  ENGLAND  131 

the  materials  at  hand.     Gradual  progress  achieved  by  coopera- 
tion is  better  and  more  certain  than  revolutionary  methods." 

(b)  Four  Principles  to  Guide  the  Attempt  to  Solve  the  Indus- 
trial Problem,  "(i)  The  first  necessity  of  the  industrial  situa- 
tion is  greater  efficiency  of  production.  In  order  to  meet  the 
difficulties  created  by  the  war,  to  make  good  the  losses  of  cap- 
ital, and  to  raise  the  standard  of  living  among  the  mass  of  our 
people,  we  must  endeavor  to  increase  both  the  volume  and  the 
quality  of  output. 

"(ii)  In  order  that  this  result  may  be  obtained  without  detri- 
ment to  the  social  welfare  of  the  community,  it  must  be  sought 
for  rather  in  improved  organization  and  the  elimination  of 
waste  and  friction  than  in  adding  to  the  strain  on  the  workers 
and  must  be  accompanied  by  a  change  of  attitude  and  spirit 
which  will  give  to  industry  a  worthier  and  more  clearly  recog- 
nized place  in  our  national  life. 

*'(iii)  This  can  be  accomplished  only  if  the  sectional  treat- 
ment of  industrial  questions  is  replaced  by  the  active  cooperation 
of  labor,  management,  and  capital  to  raise  the  general  level  of 
productive  capacity,  to  maintain  a  high  standard  of  workman- 
ship, and  to  improve  working  conditions. 

"(iv)  It  is  essential  toward  securing  such  cooperation  that 
labor,  as  a  party  to  industry,  should  have  a  voice  in  matters 
directly  concerning  its  special  interests,  such  as  rates  of  pay  and 
conditions  of  employment.  It  is  necessary  to  create  adequate 
machinery  both  for  securing  united  action  in  the  pursuit  of 
common  ends  and  for  the  equitable  adjustment  of  points  which 
involve  competing  interests.  This  machinery  must  be  suffi- 
ciently powerful  to  enable  both  sides  to  accept  its  decisions 
with  confidence  that  any  agreement  arrived  at  will  be  generally 
observed." 

(c)  Works  Committees  and  Industrial  Councils.  *Tf  we  were 
discussing  the  abstract  ideal  of  society,  it  would  be  necessary  to 
meet  various  criticisms  by  discussing  each  of  the  proposals  on 
its  merits.  But  the  present  issue  is  a  narrower  one.  We  have 
to  deal  with  a  definite  and  immediate  danger — the  prospect  of 
an  industrial  crisis  following  the  signing  of  peace.  It  is  obvious 
that  no  measure  involving  a  radical  reconstruction  of  the  social 
system  has  any  chance  of  adoption  in  time  to  avert  this  evil. 
On  the  other  hand,  the  prospect  of  any  specific  program  emerging 


132     LABOR  AND  RECONSTRUCTION  IN  EUROPE 

from  a  period  of  internal  conflict  is  small.  The  results  of  social 
or  political  upheavals  have  seldom  been  those  anticipated  by  their 
promoters. 

"The  problem  is  therefore  to  settle  the  question  of  the  status 
of  the  workman  in  some  way  which  shall  give  him  the  sense 
of  self-respect  and  of  responsibility  which  he  desires,  without 
interfering  unduly  with  the  employer's  exercise  of  the  necessary 
functions  of  management. 

"It  was  largely  as  a  defense  against  the  unions  that  the  great 
Employers'  Associations  came  into  being.  After  making  all 
allowance  for  the  occasional  insubordination  of  trade-union  mem- 
bers and  the  lack  of  support  given  in  some  quarters  to  the 
Employers'  Federations,  the  effect  of  these  parallel  organizations 
has  been  beneficial  to  both  sides. 

"In  its  simplest  form  the  new  machinery  of  control  would 
consist  of  joint  committees,  representing  both  the  management 
and  the  Works  Staff.  This  method  would  lend  itself  readily  to 
experiment  by  individual  firms  and  could  be  applied  even  in  the 
unorganized  trades  where  no  strong  trade  unions  or  federations 
of  employers  exist.  At  the  meetings  of  such  committees  any 
questions  affecting  working  methods  and  conditions  could  be 
brought  up  for  discussion  by  either  side. 

"In  the  staple  trades  the  method  of  Works  Committees  would 
require  to  be  replaced  or  supplemented  by  Joint  Boards  com- 
posed of  representatives  of  the  Employers'  Associations  and  the 
trade  unions.  Having  regard  to  the  differentiation  of  functions 
between  management  and  labor  and  the  large  number  of  prob- 
lems affecting  one  or  both  parties,  which  arise  in  a  big  industry, 
there  should  be  two  boards,  one  representing  management  and 
the  other  labor,  with  a  Supreme  Board  of  Control  coordinating 
the  work  of  both.  The  functions  of  the  Management  Board  would 
cover  the  'business'  side  of  the  industry;  those  of  the  Labor  Board 
would  relate  to  conditions  and  hours  of  labor,  the  demarcation  of 
tasks,  and  everything  that  touches  most  nearly  the  life  of  the 
worker. 

"In  its  most  ambitious  form  the  Supreme  Board  of  Control 
would  resolve  itself  into  a  National  Industrial  Council  for  each 
of  the  staple  industries  or  groups  of  allied  industries.  The  mem- 
bers would  be  elected  by  ballot,  each  electoral  unit  or  pair  of 


THE  LABOR  PROBLEM  IN  ENGLAND  133 

parallel  units  returning  one  representative  of  management  and 
one  of  labor. 

"The  field  of  action  open  to  the  Industrial  Councils  would  be 
very  great.     It  would  extend,  for  instance,  to 

"(a)  The  suggestion  and  consideration  of  improved  methods 
and  organization. 

"(b)  The  maintenance  of  works  discipline  and  output. 

"(c)  The  maintenance  of  a  high  standard  of  design  and  work- 
manship. 

"(d)  The  education  and  training  of  apprentices  and  the  con- 
ditions of  entry  into  the  industry  concerned. 

"(e)  The  demarcation  of  tasks. 

"(/)  The  prevention  of  unemployment,  the  development  of 
security  of  tenure  in  trade,  and  the  decasualization  of  labor. 

"(s)  Questions  of  wages  and  piece  rates. 

"(h)  The  prosecution  of  research  and  experiment. 

"(i)  The  improving  of  the  public  status  of  industry." 

(3)  Report  of  the  Committee  on  Industrial  Unrest  of  the  Sec- 
tion of  Economic  Science  and  Statistics  of  the  British  Associa- 
tion for  the  Advancement  of  Science,  1916.*'^  (a)  Methods. 
The  methods  proposed  to  diminish  industrial  unrest  include: 

(i)  Conciliation  and  arbitration  boards. 

(ii)  Arbitration: 
Voluntary. 
Compulsory. 

(iii)  The  industrial  council. 

(iv)  Profit  sharing  and  copartnership^ 

(v)   Cooperative  associations. 

Each  of  these  is  treated  at  length  and  can  merely  be  mentioned 
here. 

(b)  Recommendations. 

"(i)  The  general  attitude  and  outlook  of  employers  and  work- 
ers. 

"(x)  That  there  should  be  frankness  on  both  sides,  and  that 
both  employers  and  workers  should  discuss  industrial  matters 
together,  or  through  duly  accredited  representatives. 

"(y)   That  employers  should  consider  the  collective  cost  of 

"  A.  W.  Kirkaldy,  "Labour,  Finance,  and  the  War,"  pp.  ^i,  40-5O1 
191 6. 


134    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

labor  and  not  merely  the  amount  of  wages  earned  by  the  work- 
man each  week. 

"(z)  That  the  fundamental  facts  and  principles  of  economics 
should  be  recognized  by  both  employers  and  employed. 

"(ii)  Machinery  for  dealing  with  disputes. 

"(zt')  That  workers  and  employers  in  each  industry  should 
extend  and  improve  their  organizations  with  a  view  to  determin- 
ing jointly  the  conditions  under  which  the  particular  industry 
should  be  carried  on. 

"(jc)  That  in  each  industry  permanent  joint  boards  or  com- 
mittees should  be  set  up  to  consider  all  matters  of  common  inter- 
est to  both  employers  and  employed. 

"(3')  That  there  should  be  a  National  Joint  Board,  composed 
of  representatives  of  employers  and  workers,  to  which  the  local 
and  industrial  joint  boards  should  refer  disputes  which  they 
have  been  unable  to  settle. 

"(z)  That  both  employers  and  workmen  should  be  absolutely 
loyal  to  the  decisions  and  agreements  made  by  their  organiza- 
tions. 

"(iii)  The  organizations  of  industry. 

"(f)  That  the  necessity  for  cooperation  between  employers 
and  employed  be  frankly  recognized  by  both  parties. 

^(w)  The  cooperation  between  workpeople  and  managers 
should  go  further  than  the  mere  distribution  of  the  products 
of  industry. 

"(x)  There  are  other  branches  of  organization  concerned  with 
the  detailed  working  of  factories  which  might  be  carried  out  by 
cooperation  between  the  workers  and  the  management. 

""(y)  Recommendations  as  to  the  policy  to  pursue  when  new 
machines  or  processes  which  will  lessen  the  amount  of  labor 
required  for  a  given  operation  are  available: 

"(y-r)  That  the  employers  should  make  a  forecast  as  to  the 
exact  effect  of  the  new  methods;  this  to  include 

"(a')  The  gross  financial  benefit. 

"(6')  The  saving  in  labor  employed  on  present  output. 

"{c')  Possible  increased  demand  consequent  on  a  certain  de- 
crease in  price. 

"(</')  The  amount  of  new  capital  required  to  finance  the 
change. 

"(e')  The  eventual  effect  on  the  labor  employed. 


THE  LABOR  PROBLEM  IN  ENGLAND  135 

"(3;-2)  That  this  forecast  should  be  considered  by  both  the 
employers  or  their  representatives  and  by  the  workers  affected 
or  their  representatives, 

"{y-3)  That  an  arrangement  be  agreed  upon,  equitable  in  the 
long  run  to  all  parties  concerned,  with  due  regard  to  the  facts 
that— 

"(a')  Capital  takes  all  the  financial  risk  of  the  new  methods 
but 

"(&')  Has  hitherto  had  the  advantages  of  any  immediate  gain. 

"(c')  Labor,  at  the  outset,  may  be  diminished  in  numbers  em- 
ployed, though  eventually  a  new  process  results  in  the  employ- 
ment of  more  labor  and  probably  in  the  preservation  of  the 
industry.  Thus,  there  may  be  an  immediate  and  serious  loss  to 
part  of  the  labor  hitherto  employed. 

"{d')  Some  labor  may  benefit  immediately — that  is,  if  in- 
creased pay  is  given  to  those  working  the  new  method. 

"(e')  Labor  is  employed  in  designing  and  making  the  machine. 

"iy-4)  Consider  to  what  extent  temporarily  displaced  labor 
can  or  ought  to  be  compensated  by  means  of  unemployment 
insurance  or  by  a  percentage  of  the  increased  product. 

"(2)  To  summarize  briefly  the  suggestions  for  the  improve- 
ment of  existing  industrial  organization: 

"(z-i)  Employers  should  be  organized  into 

"(a')  Associations  for  each  trade  in  a  given  district. 

"(6')  National  associations  for  the  respective  trades. 

"(cO  Local  federations  of  trades. 

"(<f')  National  federations  of  trades. 

"Of  these,  the  national  associations  and  federations  would  be 
organized  under  a  system  of  representation, 

"(2-2)  Workpeople  should  have  unions  and  federations  cor- 
responding to  those  of  the  employers,  and  in  both  cases  the  na- 
tional federations  should  be  carefully  organized  into  councils 
enjoying  a  large  measure  of  authority,  tempered  by  the  necessity 
to  win  and  preserve  the  confidence  of  their  electors. 

"From  these  two  representative  bodies  there  could  be  elected  an 
Industrial  Council  as  a  Court  of  Appeal,  representative  of  the 
whole  industrial  activity  of  the  country.  So  far  as  these  various 
bodies  were  approved  by  the  State  they  would  enjoy  far-reach- 
ing powers. 


136  LABOR  AND  RECONSTRUCTION  IN  EUROPE 

"Approval  by  the  State  should  depend  on  the  observance  of 
moderation  and  the  working  in  conformity  with  carefully  devised 
regulations.  For  the  State  in  this  matter  would  be  the  repre- 
sentative of  the  consumer  and  of  the  national  interest.  Under 
this  system  workpeople  would  enjoy  all  the  advantages  aimed 
at  by  the  extreme  party  such  as  the  Syndicalist,  but  the  dangers 
and  risks  inseparable  from  a  revolutionary  policy  would  be 
avoided." 

(4)  The  Five  Points  0}  the  New  Charter.^''  Sidney  Webb  has 
reduced  the  labor  problem  to  five  categories,  which  may  be 
made  the  basis  of  a  new  settlement.  The  five  points  are  set 
forth  below,  under  paragraph  {c). 

(a)  The  Prevention  of  Unemployment.  "The  first  and  the 
most  indispensable  condition  of  industrial  peace  under  the  new 
settlement  is  that  the  Government  shall  undertake  to  prevent 
the  occurrence  of  unemployment,  much  as  it  prevents  the  occur- 
rence of  cholera.  This  can  be  done  by  such  a  systematic  rear- 
rangement of  the  necessary  works  and  orders  of  the  Government 
departments  and  local  authorities  over  each  decade  as  will 
maintain  approximately  level  from  year  to  year  the  aggregate 
wage  total  of  the  kingdom." 

(b)  The  Maintenance  of  the  Standard  Rates.  "The  standard 
rate,  it  must  be  remembered,  is  never  anything  but  a  minimum. 
The  joint  board  in  each  industry  should  be  required  to  formulate 
for  the  whole  industry  a  precisely  defined  standard  rate  applicable 
to  each  grade  and  section  of  the  industry  and  based  upon  the 
existing  practice  of  the  best  employers:  The  joint  board  set- 
tling the  standard  rate  must  settle  also  its  equivalent  in  piece- 
work, as  is  habitually  done  by  the  trade  boards.  This  should  be 
on  a  uniform  basis  of  time  and  a  quarter  or  time  and  a  third. 
Rate  fixing  should  be  intrusted  to  a  couple  of  salaried  rate 
fixers,  one  appointed  by  the  employers'  association  and  the  other 
by  the  trade  union,  who  shall  be  called  in  to  adjudicate  by  any 
employer  or  workman." 

{c)  A  Constitution  for  Factory  and  Industry,  "(i)  Universal 
acceptance  of  trade  unionism  by  employers — making  it  a  penal 
offense  for  an  employer  to  have  a  rule  against  engaging  trade 

"Sidney  Webb,  "Restoration  of  Trade  Union  Conditions,"  pp.   79, 
85,  93,  loi,  103,  106. 


THE  LABOR  PROBLEM  IN  ENGLAND  137 

unionists,  or  for  him  to  refuse  unreasonably  to  receive  the  trade- 
union  officials  or  to  negotiate  with  them. 

"(ii)  Workshop  committees  or  shop  stewards  to  be  provided 
for  in  every  establishment  having  more  than  20  operatives,  to 
whom  the  employer  should  be  required  to  communicate  at  least 
one  week  prior  to  their  adoption  any  proposed  new  rules  and 
also  any  proposed  changes  in  wage  rates,  piecework  prices,  allow- 
ances, deductions,  hours  of  labor,  meal  times,  methods  of  work- 
ing, and  conditions  affecting  the  comfort  of  the  workshop. 

"(iii)  Can  we  add  to  this  constitution  a  clause  providing  for 
a  deliberative  national  council  for  each  industry?  An  interesting 
proposal  has  been  made  by  a  London  builder  for  a  permanent 
'Industrial  Parliament  for  the  Building  Industry.'  The  func- 
tion of  the  parliament  would  not  be  the  adjustment  of  differences 
or  the  settlement  of  disputes.  It  would  not  be  a  judicial  or 
conciliatory  but  a  constructive  body.  The  following  matters 
call  urgently  for  attention  from  such  a  joint  council  of  employers 
and  employed  in  the  building  industry  at  the  present  moment: 

"(«)  Regularization  of  Wages.  The  provision  of  a  graduated 
scale  of  minimum  rates  designed  to  maintain  real  wages  as  nearly 
as  possible  identical  throughout  the  country.  Subsequent  ad- 
vances to  be  on  a  national  basis. 

"(v)  Unemployment.  To  acquire  a  fuller  participation  in  the 
control  of  the  Board  of  Trade  Labor  Exchanges,  and  to  supple- 
ment their  work  by  improved  organization  special  to  the  build- 
ing trade 

"(fl')  for  the  decasualization  of  labor,  and 

"(6')  by  minimizing  the  fluctuation  of  trade  by  intelligent  an- 
ticipation and  the  augmentation  of  demand  in  slack  periods, 
in  cooperation  with  the  national  and  local  government  bodies. 

"(w)  Employment  of  Partly  Disabled  Soldiers.  To  consider 
the  employment  of  partly  disabled  soldiers  and  to  insure  that  the 
pensions  granted  by  the  Nation  shall  not  become  the  means  of 
reducing  the  standard  of  wages. 

"(ac)  Technical  Training  and  Apprenticeship.  To  make  pro- 
vision for  adequate  technical  training  for  the  members  of  the 
industry,  apprenticeship,  and  the  regulation  of  the  conditions  of 
entry  into  the  industry. 

"(y)  Publicity.  To  issue  authoritative  information  upon  all 
matters  whereon  it  is  deemed  desirable  that  leaders  of  public 


138  LABOR  AND  RECONSTRUCTION  IN  EUROPE 

opinion,  the  press,  and  the  general  public  should  have  exact 
information. 

"(z)  Investigation  into  Possible  Lines  of  Improvement,  To 
investigate,  in  conjunction  with  experts,  foreseeable  developments, 
probable  changes,  and  suggested  improvements,  such  as 

"{a')  Scientific  management. 

"(b')  Industrial  control  and  status  of  labor. 

"(c')  Improvements  in  design  and  standards  of  workmanship. 

'^{d')  Closer  association  between  commercial  and  esthetic  re- 
quirements. 

"(e')  Additions  to  this  list  would  be  made  as  occasion  arose. 

"(iv)  No  limitation  of  output.  This  has  been  in  the  past  the 
sullen  reprisal  of  the  workshop  to  the  employer's  constant  at- 
tempts to  cut  rates  and  to  his  peremptory  turning  off  of  hands 
whenever  work  was  slack.  Making  these  two  concessions,  the 
Government  can  legitimately  ask  for  a  frank  abandonment  of  a 
practice  which  does  more  harm  to  British  industry  than  all  the 
strikes  and  lockouts. 

"(v)  Freedom  for  every  worker  and  every  employer.  In  re- 
turn for  these  concessions,  the  Government  may  fairly  ask  from 
the  trade  unions  complete  freedom  for  the  employer  for  engag- 
ing any  person  whatever,  for  any  sort  of  work;  complete  freedom 
for  any  person  to  do  any  task  or  carry  out  any  process;  and 
complete  freedom  for  the  introduction  of  any  machinery  or 
process." 

(S)  Tke  1917  Report  of  the  Committee  of  the  Section  on 
Economic  Science  and  Statistics  of  the  British  Association  for 
the  Advancement  of  Science. ^^  An  inquiry  into  the  elements  of 
labor  organization  was  conducted  by  a  committee  of  British 
economists.    The  report  is  given  herewith. 

Gathering  together  the  views  and  suggestions  made,  the  com- 
mittee felt  that  three  separate  organizations  within  the  works 
are  necessary  to  represent  the  workers  in  the  elaborate  organisms 
toward  which  modern  factories  tend.  Modern  industry  is  com- 
plicated, and  the  attempt  to  introduce  democratic  ideas  into 
its  management  will  necessarily  make  it  more  so.  The  scope  of 
the  three  committees  is  shown  by  the  following  summary: 
(a)  Shop  Stewards*  Committee. 

®  C.  G.  Renold,  "Workshop  Committees,"  chapter  in  "Industry  and 
Finance,"  edited  by  A.  W.  Kirkaldy,  1917, 


THE  LABOR  PROBLEM  IN  ENGLAND  139 

(i)  Sphere.  Controversial  questions  where  interests  of  em- 
ployer and  worker  are  apparently  opposed. 

(ii)  Constitution.  Consists  of  trade  unionist  workers,  elected 
by  works  departments. 

(iii)  Function.  Sits  by  itself,  but  has  regular  meetings  with 
the  management. 

(iv)  Examples  of  questions  dealt  with. 

Wage  and  piece  rates. 

The  carrying  out  of  trade  union  agreements. 

Negotiations  as  to  the  application  of  legislation  to  the  workers 
represented — e.  g.,  dilution,  exemption  from  recruiting. 

The  carrying  out  of  national  agreements  as  to  the  restoration 
of  trade-union  conditions;  demobilization  of  war  industries,  etc. 

Introduction  of  new  processes. 

Ventilation  of  grievances  as  to  any  of  above. 

(6)  Welfare  Committee. 

(i)  Sphere.  "Community"  questions,  where  there  is  no  clash 
between  interests  of  employer  and  worker. 

(ii)  Constitution.  Composite  committee  of  management  and 
workers,  vnih  some  direct  representation  of  trade  unions. 

(iii)  Function.  Sits  as  one  body,  with  some  questions  rele- 
gated to  subcommittees,  consisting  either  wholly  of  workers  or 
of  workers  and  management,  according  to  the  nature  of  the  case. 

(iv)  Examples  of  questions  dealt  with. 

Shop  rules. 

Such  working  conditions  as  starting  and  stopping  times,  meal 
hours,  night-shift  arrangements,  etc. 

Accident  and  sickness  arrangements. 

Shop  comfort  and  hygiene. 

Benevolent  work,  such  as  collections  for  charities,  hard  cases 
of  illness  or  accident  among  the  workers  themselves. 

Education  schemes:  Trade  technique;  new  works  develop- 
ments; statistics  of  works  activity;  business  outlook. 

Promotions:     Explanation  and,  if  possible,  consultation. 

Ventilation  of  grievances  concerning  any  of  above. 

(c)  Social  Union. 

(i)  Sphere.    Social  amenities,  mainly  outside  working  hours. 

(ii)  Constitution.  Includes  any  or  all  grades  of  management 
and  workers. 


140    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

(iii)  Function.  Governing  body  elected  by  members  irre- 
spective of  trade,  grade,  or  sex. 

(iv)  Examples  of  activities.  Institution  of  clubs  for  sports; 
cricket,  football,  swimming,  etc. 

Recreative  societies;  orchestral,  choral,  debating,  etc. 

Arranging  social  events;   picnics,  dances,  etc. 

Provision  of  games,  library,  etc.,  for  use  in  meal  hours. 

Administration  of  club  rooms. 

(6)  Recommendations  of  the  Committee  of  Inquiry  into  In- 
dustrial Unrest.  This  committee,  appointed  by  Lloyd  George, 
June  12,  19 1 7,  came  to  conclusions  similar  to  those  reached  by 
the  unofficial  committee  of  British  economists,  mentioned  above. 
They  are  in  summary  as  follows: 

{a)  Food  Prices.  There  should  be  an  immediate  reduction  in 
price,  the  increased  price  of  food  being  borne  to  some  extent 
by  the  Government,  and  a  better  system  of  distribution  be  per- 
fected. 

{b)  Industrial  Councils,  etc.  The  principle  of  the  Whitley 
Reports  '^^  should  be  adopted ;  each  trade  should  have  a  consti- 
tution. 

(c)  Changes  with  a  view  to  further  increase  of  output  should 
be  made  the  subject  of  an  authoritative  statement  by  the  Gov- 
ernment. 

{d)  Labor  should  take  part  in  the  affairs  of  the  community  as 
partners,  rather  than  as  servants. 

(/)  The  Government  should  make  a  statement  as  to  the 
variation  of  pledges  already  given.'^° 

{h)  Announcements  should  be  made  of  policy  as  regards  hous- 
ing. 

{i)  A  system  should  be  inaugurated  whereby  skilled  super- 
visors and  others  on  day  rates  should  receive  a  bonus. 

{k)  Closer  contact  should  be  set  up  between  employer  and 
employed. 

(7)  The  Whitley  Reports.  The  Reconstruction  Ministry's 
subcommittee  on  the  Relation  between  Employer  and  Employed 
prepared  a  number  of  official  reports  on  Joint  Standing  Industrial 

^  See  Whitley  Reports,  below. 

"  See  "Restoration  of  Trade  Union  Conditions,"  above. 


THE  LABOR  PROBLEM  IN  ENGLAND  141 

Councils,  with  a  view  to  meeting  the  after-war  problems,  which 
are  of  momentous  significance.  What  the  Magna  Carta  sig- 
nifies in  the  history  of  political  democracy,  the  Whitley  Reports 
may  come  to  mean  in  the  future  industrial  democracy.  They 
merit  close  study  by  American  economists,  manufacturers,  and 
laboring  men.     There  follow 

(a)  Descriptive  circular  of  the  Ministry  of  Labor. 

(b)  The  First  Whitley  Report  and  appendix. 

(c)  Comment  of  the  Minister  of  Labor. 

(d)  Second  Report,  covering  partly  organized  trades. 

(e)  Supplementary  Report  on  Works  Committees. 

(f)  Final  Report. 

(g)  Joint  Standing  Councils  first  established  in  the  Pottery 
Trades. 

(h)  Report  on  Conciliation  and  Arbitration. 

(a)  Descriptive  circular  of  the  Ministry  of  Labor  on  Joint 
Standing  Councils  J  ^ 

The  Ministry  of  Labor  has  prepared  and  issued  a  leaflet  en- 
titled "Industrial  councils:  The  recommendations  of  the  Whitley 
Report."  The  leaflet  gives  a  brief  outline  of  the  principal  recom- 
mendations of  the  report  for  the  information  of  the  public. 

The  sections  of  the  leaflet  dealing  with  "The  need  for  indus- 
trial councils"  and  "Industrial  councils  and  the  Government" 
are  as  follows: 

(i)  The  Need  for  Industrial  Councils.  While  there  is  no  doubt 
that  every  industry  has  problems  which  can  be  solved  only  if  the 
experience  of  every  grade  and  section  of  the  industry  is  brought 
to  bear  on  them,  hitherto  the  tendency  has  been  for  every  grade 
and  section  to  go  its  own  way.  Whenever  the  Government  wishes 
to  ascertain  the  needs  and  opinions  of  an  industry,  instead  of 
one  organization  sj^eaking  with  a  single  voice,  a  dozen  organiza- 
tions speak  with  a  dozen  voices.  The  different  sections  and  inter- 
ests are  organized  and  can  put  their  point  of  view ;  the  industry  as 
a  whole  has  no  representative  organization,  so  that  the  general 
interest  of  the  industry  may  be  overlooked.  Sectional  interests 
often  conflict;  there  is  no  need,  for  example,  to  disguise  the  con- 
flict of  interests  between  employers  and  employed;  and  the  Whit- 
ley Report  proposes  nothing  of  the  nature  of  compulsory  arbitra- 

"  Labour  Gazette,  London,  May,  1918,  p.  174,  reprinted  in  the 
Monthly  Labor  Review,  Washington,  July,  1918. 


142     LABOR  AND  RECONSTRUCTION  IN  EUROPE 

tion,  nothing  that  will  limit  or  interfere  with  the  right  to  lock  out 
or  strike.  But  no  one  in  industry  wants  an  unnecessary  stoppage; 
these  can  be  prevented  only  by  the  representatives  of  conflicting 
interests  meeting  to  thrash  out  their  differences ;  and  all  the  prob- 
lems that  will  face  industry  after  the  war  call  for  continuous 
consultation  and  cooperation  of  all  sections,  grades,  and  interests. 
For  every  reason,  therefore,  industrial  councils,  fully  representa- 
tive of  all  sections  and  interests  in  each  industry,  are  an  urgent 
necessity. 

In  some  industries  there  exist  already  joint  conciliation  boards 
performing  some  of  the  functions  of  industrial  councils.  These  are, 
however,  as  a  rule,  limited  either  in  the  work  they  undertake  or 
in  the  sections  of  the  industry  which  they  represent.  Although, 
therefore,  existing  joint  boards  will  in  many  cases  provide  the 
basis  for  industrial  councils,  they  can  not  handle  the  problems 
referred  to  above  with  which  the  industries  of  the  country  will 
be  faced  after  the  war.  What  is  needed  is  an  organization  repre- 
senting the  whole  industry  and  capable  of  speaking  for  all  the 
firms  and  all  the  workpeople  employed  in  it.  The  Government's 
adoption  of  the  Whitley  Report  is  simply  an  invitation  to  the 
industries  of  the  country  to  organize  themselves  in  this  way,  for 
their  own  benefit  and  for  the  benefit  of  the  community. 

(ii)  Industrial  Councils  and  the  Government.  The  primary 
object  of  industrial  councils  is  to  regularize  the  relations  between 
employers  and  employed.  But  they  will  serve  another  urgent 
need,  and  in  so  doing  will  give  to  workpeople  a  status  in  their 
respective  industries  that  they  have  not  had  hitherto.  There  is 
a  large  body  of  problems  which  belong  both  to  industry  and  to 
politics.  They  belong  to  politics  because  the  community  is  re- 
sponsible for  their  solution  and  the  State  must  act  if  no  other 
provision  is  made ;  they  belong  to  industry  because  they  can  be 
solved  only  by  the  knowledge  and  experience  of  the  people 
actually  engaged  in  industry.  Such  problems  are  the  regulariza- 
tion  of  employment,  industrial  training,  utilization  of  inventions, 
industrial  research,  the  improvement  of  design  and  quality,  legis- 
lation affecting  workshop  conditions — all  of  them  questions  which 
have  hitherto  been  left  in  the  main  to  employers,  but  which  in 
reality  constitute  an  important  common  interest  on  the  basis  of 
which  all  engaged  in  an  industry  can  meet.  The  termination  of 
the  war  will  bring  with  it  a  mass  of  new  problems  of  this  nature — 
for  example,  demobilization,  the  training  of  apprentices  whose 
apprenticeship  was  interrupted  by  military  service,  the  settlement 
in  industry  of  partially  disabled  men,  and,  in  general,  the  recon- 
version of  industry  to  the  purposes  of  peace.    It  is  urgently  neces- 


I 


THE  LABOR  PROBLEM  IN  ENGLAND  143 

sary  that  the  Government  should  be  able  to  obtain  without  delay 
the  experience  and  views  of  the  people  actually  in  industry  on  all 
these  questions.  It  proposes,  therefore,  to  treat  industrial  coun- 
cils as  standing  consultative  committees  to  the  Government  and 
the  normal  channel  through  which  it  will  seek  the  experience 
and  advice  of  industries.  Further,  many  of  these  problems  can 
be  handled  by  each  industry  for  itself,  provided  that  it  has  an 
organization  representative  of  all  sections  and  interests  within  it. 
The  establishment  of  industrial  councils  will  therefore  make  un- 
necessary a  large  amount  of  "Government  interference,"  which 
is  at  present  unavoidable,  and  substitute  for  it  a  real  measure  of 
"self-government"  in  industry. 

(b)  Interim  Report  on  Joint  Standing  Industrial  Cotmcils,  Pre- 
sented by  the  Sub-committee  on  Relations  Between  Employers 
and  Employed,  of  the  Reconstruction  Ministry  P 

To  the  Right  Hon.  D.  Lloyd  George,  M.  P.,  Prime  Minister. 

Sir:  We  have  the  honor  to  submit  the  following  interim  re- 
port on  joint  standing  industrial  councils: 

2.  The  terms  of  reference  to  the  subcommittee  are : 

(i)  To  make  and  consider  suggestions  for  securing  a  perma- 
nent improvement  in  the  relations  between  employers  and  work- 
men. 

(2)  To  recommend  means  for  securing  that  industrial  con- 
ditions affecting  the  relations  between  employers  and  workmen 
shall  be  systematically  reviewed  by  those  concerned,  with  a  view 
to  improving  conditions  in  the  future. 

3.  After  a  general  consideration  of  our  duties  in  relation  to  the 
matters  referred  to  us,  we  decided  first  to  address  ourselves  to  the 
problem  of  establishing  permanently  improved  relations  between 
employers  and  employed  in  the  main  industries  of  the  country, 
in  which  there  exist  representative  organizations  on  both  sides. 
The  present  report  accordingly  deals  more  especially  with  these 
trades.  We  are  proceeding  with  the  consideration  of  the  prob- 
lems connected  with  the  industries  which  are  less  well  organized. 

4.  We  appreciate  that  under  the  pressure  of  the  war  both 
employers  and  workpeople  and  their  organizations  are  very  much 
preoccupied,  but,  notwithstanding,  we  believe  it  to  be  of  the  high- 
est importance  that  our  proposals  should  be  put  before  those  con- 
cerned without  delay,  so  that  employers  and  employed  may  meet 
in  the  near  future  and  discuss  the  problems  before  them. 

"Printed  separately  as  a  Parliamentary  paper  (Cd.  8606)  and  re- 
printed in  Bulletin  237  of  the  U.  S.  Bureau  of  Labor  Statistics. 


144    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

5.  The  circumstances  of  the  present  time  are  admitted  on  all 
sides  to  offer  a  great  opportunity  for  securing  a  permanent  im- 
provement in  the  relations  between  employers  and  employed,  while 
failure  to  utilize  the  opportunity  may  involve  the  nation  in  grave 
industrial  difficulties  at  the  end  of  the  war. 

It  is  generally  allowed  that  the  war  almost  enforced  some 
reconstruction  of  industry,  and  in  considering  the  subjects  re- 
ferred to  us  we  have  kept  in  view  the  need  for  securing  in  the 
development  of  reconstruction  the  largest  possible  measure  of 
cooperation  between  employers  and  employed. 

In  the  interests  of  the  community  it  is  vital  that  after  the  war 
the  cooperation  of  all  classes,  established  during  the  war,  should 
continue,  and  more  especially  with  regard  to  the  relations  between 
employers  and  employed.  For  securing  improvement  in  the  latter, 
it  is  essential  that  any  proposals  put  forward  should  offer  to  work- 
people the  means  of  attaining  improved  conditions  of  employment 
and  a  higher  standard  of  comfort  generally,  and  involve  the  en- 
listment of  their  active  and  continuous  cooperation  in  the  pro- 
motion of  industry. 

To  this  end,  the  establishment  for  each  industry  of  an  organiza- 
tion, representative  of  employers  and  workpeople,  to  have  as  its 
object  the  regular  consideration  of  matters  affecting  the  progress 
and  well-being  of  the  trade  from  the  point  of  view  of  all  those 
engaged  in  it,  so  far  as  this  is  consistent  with  the  general  interest 
of  the  community,  appears  to  us  necessary. 

6.  Many  complicated  problems  have  arisen  during  the  war 
which  have  a  bearing  both  on  employers  and  workpeople  and  may 
affect  the  relations  between  them.  It  is  clear  that  industrial  con- 
ditions will  need  careful  handling  if  grave  difficulties  and  strained 
relations  are  to  be  avoided  after  the  war  has  ended.  The  precise 
nature  of  the  problems  to  be  faced  naturally  varies  from  industry 
to  industry,  and  even  from  branch  to  branch  within  the  same 
industry.  Their  treatment  consequently  will  need  an  intimate 
knowledge  of  the  facts  and  circumstances  of  each  trade,  and  such 
knowledge  is  to  be  found  only  among  those  directly  connected 
with  the  trade. 

7.  With  a  view  to  providing  means  for  carrying  out  the  policy 
outlined  above,  we  recommend  that  the  Government  should  pro- 
pose without  delay  to  the  various  associations  of  employers  and 
employed  the  formation  of  joint  standing  industrial  councils  in 
the  several  industries,  where  they  do  not  already  exist,  composed 
of  representatives  of  employers  and  employed,  regard  being  paid 
to  the  various  sections  of  the  industry  and  the  various  classes  of 
labor  engaged. 


THE  LABOR  PROBLEM  IN  ENGLAND  145 

8.  The  appointment  of  a  chairman  or  chairmen  should,  we 
think,  be  left  to  the  council  who  may  decide  that  these  should  be — 

(i)  A  chairman  for  each  side  of  the  council; 

(2)  A  chairman  and  vice  chairman  selected  from  the  members 
of  the  council  (one  from  each  side  of  the  council)  ; 

(3)  A  chairman  chosen  by  the  council  from  independent  per- 
sons outside  the  industry;  or 

(4)  A  chairman  nominated  by  such  person  or  authority  as  the 
council  may  determine  or,  failing  agreement,  by  the  Government. 

9.  The  council  should  meet  at  regular  and  frequent  intervals. 

10.  The  objects  to  which  the  consideration  of  the  councils 
should  be  directed  should  be  appropriate  matters  affecting  the 
several  industries  and  particularly  the  establishment  of  a  closer 
cooperation  between  employers  and  employed.  Questions  con- 
nected with  demobilization  will  call  for  early  attention. 

11.  One  of  the  chief  factors  in  the  problem,  as  it  at  first 
presents  itself,  consists  of  the  guaranties  given  by  the  Govern- 
ment, with  parliamentary  sanction,  and  the  various  undertakings 
entered  into  by  employers,  to  restore  the  trade-union  rules  and 
customs  suspended  during  the  war.  While  this  does  not  mean 
that  all  the  lessons  learned  during  the  war  should  be  ignored, 
it  does  mean  that  the  definite  cooperation  and  acquiescence  by 
both  employers  and  employed  must  be  a  condition  of  any  setting 
aside  of  these  guaranties  or  undertakings,  and  that,  if  new  ar- 
rangements are  to  be  reached,  in  themselves  more  satisfactory  to 
all  parties  but  not  in  strict  accordance  with  the  guaranties,  they 
must  be  the  joint  work  of  employers  and  employed. 

12.  The  matters  to  be  considered  by  the  councils  must  in- 
evitably differ  widely  from  industry  to  industry,  as  different  cir- 
cumstances and  conditions  call  for  different  treatment,  but  we 
are  of  opinion  that  the  suggestions  set  forth  below  ought  to  be 
taken  into  account,  subject  to  such  modification  in  each  case  as 
may  serve  to  adapt  them  to  the  needs  of  the  various  industries. 

13.  In  the  well-organized  industries,  one  of  the  first  questions 
to  be  considered  should  be  the  establishment  of  local  and  works 
organizations  to  supplement  and  make  more  effective  the  work 
of  the  central  bodies.  It  is  not  enough  to  secure  cooperation  at 
the  center  between  the  national  organizations;  it  is  equally  neces- 
sary to  enlist  the  activity  and  support  of  employers  and  employed 
in  the  districts  and  in  individual  establishments.  The  national 
industrial  council  should  not  be  regarded  as  complete  in  itself; 
what  is  needed  is  a  triple  organization — in  the  workshops,  the 
districts,  and  nationally.  Moreover,  it  is  essential  that  the  organ- 
ization at  each  of  these  three  stages  should  proceed  on  a  com- 


146  LABOR  AND  RECONSTRUCTION  IN  EUROPE 

mon  principle,  and  that  the  greatest  measure  of  common  action 
between  them  should  be  secured. 

14.  With  this  end  in  view,  we  are  of  opinion  that  the  follow- 
ing proposals  should  be  laid  before  the  national  industrial  coun- 
cils: 

(a)  That  district  councils,  representative  of  the  trade-unions 
and  of  the  employers'  associations  in  the  industry,  should  be 
created,  or  developed  out  of  the  existing  machinery  for  negotiation 
in  the  various  trades. 

(b)  That  works  committees,  representative  of  the  manage- 
ment and  of  the  workers  employed,  should  be  instituted  in  par- 
ticular works  to  act  in  close  cooperation  with  the  district  and 
national  machinery. 

As  it  is  of  the  highest  importance  that  the  scheme  making 
provision  for  these  committees  should  be  such  as  to  secure  the 
support  of  the  trade  unions  and  employers'  associations  con- 
cerned, its  design  should  be  a  matter  for  agreement  between 
these  organizations. 

Just  as  regular  meetings  and  continuity  of  cooperation  are 
essential  in  the  case  of  the  national  industrial  councils,  so  they 
seem  to  be  necessary  in  the  case  of  the  district  and  works  organ- 
izations. The  object  is  to  secure  cooperation  by  granting  to  work- 
people a  greater  share  in  the  consideration  of  matters  affecting 
their  industry,  and  this  can  only  be  achieved  by  keeping  em- 
ployers and  workpeople  in  constant  touch. 

15.  The  respective  functions  of  works  committees,  district 
councils,  and  national  councils  will  no  doubt  require  to  be  de- 
termined separately  in  accordance  with  the  varying  conditions  of 
different  industries.  Care  will  need  to  be  taken  in  each  case  to 
delimit  accurately  their  respective  functions,  in  order  to  avoid 
overlapping  and  resulting  friction.  For  instance,  where  condi- 
tions of  employment  are  determined  by  national  agreements,  the 
district  councils  or  works  committees  should  not  be  allowed  to 
contract  out  of  conditions  so  laid  down,  nor,  where  conditions 
are  determined  by  local  agreements,  should  such  power  be  allowed 
to  works  committees. 

16.  Among  the  questions  with  which  it  is  suggested  that  the 
national  councils  should  deal  or  allocate  to  district  councils  or 
works  committees  the  following  may  be  selected  for  special  men- 
tion: 

(i)  The  better  utilization  of  the  practical  knowledge  and  ex- 
perience of  the  workpeople. 

(ii)  Means  for  securing  to  the  workpeople  a  greater  share  in 


THE  LABOR  PROBLEM  IN  ENGLAND  147 

and  responsibility  for  the  determination  and  observance  of  the 
conditions  under  which  their  work  is  carried  on. 

(Hi)  The  settlement  of  the  general  principles  governing  the 
conditions  of  employment,  including  the  methods  of  fixing,  paying, 
and  readjusting  wages,  having  regard  to  the  need  for  securing 
to  the  workpeople  a  share  in  the  increased  prosperity  of  the  in- 
dustry. 

(iv)  The  establishment  of  regular  methods  of  negotiation  for 
issues  arising  between  employers  and  workpeople,  with  a  view 
both  to  the  prevention  of  differences  and  to  their  better  adjust- 
ment when  they  appear. 

(v)  Means  of  insuring  to  the  workpeople  the  greatest  possible 
security  of  earnings  and  employment,  without  undue  restriction 
upon  change  of  occupation  or  employer. 

(vi)  Methods  of  fixing  and  adjusting  earnings,  piecework 
prices,  etc.,  and  of  dealing  with  the  many  difficulties  which  arise 
with  regard  to  the  method  and  amount  of  payment  apart  from  the 
fixing  of  general  standard  rates,  which  are  already  covered  by 
paragraph  (iii). 

(vii)  Technical  education  and  training. 

(viii)   Industrial  research  and  the  full  utilization  of  its  results. 

(ix)  The  provision  of  facilities  for  the  full  consideration  and 
utilization  of  inventions  and  improvements  designed  by  work- 
people, and  for  the  adequate  safeguarding  of  the  rights  of  the 
designers  of  such  improvements. 

(x)  Improvements  of  processes,  machinery,  and  organization 
and  appropriate  questions  relating  to  management  and  the  exam- 
ination of  industrial  experiments,  with  special  reference  to  co- 
operation in  carrying  new  ideas  into  effect  and  full  consideration 
of  the  workpeople's  point  of  view  in  relation  to  them. 

(xi)   Proposed  legislation  affecting  the  industry. 

17.  The  methods  by  which  the  functions  of  the  proposed  coun- 
cils should  be  correlated  to  those  of  joint  bodies  in  the  different 
districts  and  in  the  various  works  within  the  districts  must 
necessarily  vary  according  to  the  trade.  It  may,  therefore,  be  the 
best  policy  to  leave  it  to  the  trades  themselves  to  formulate 
schemes  suitable  to  their  special  circumstances,  it  being  under- 
stood that  it  is  essential  to  secure  in  each  industry  the  fullest 
measure  of  cooperation  between  employers  and  employed,  both 
generally,  through  the  national  councils,  and  specifically,  through 
district  committees  and  workshop  committees. 

18.  It  would  seem  advisable  that  the  Government  should  put 
the  proposals  relating  to  national  industrial  councils  before  the 
employers'    and   workpeople's   associations    and   request   them    to 


148  LABOR  AND  RECONSTRUCTION  IN  EUROPE 

adopt  such  measures  as  are  needful  for  their  establishment  where 
they  do  not  already  exist.  Suitable  steps  should  also  be  taken, 
at  the  proper  time,  to  put  the  matter  before  the  general  public. 

19.  In  forwarding  the  proposals  to  the  parties  concerned,  we 
think  the  Government  should  offer  to  be  represented  in  an  advis- 
ory capacity  at  the  preliminary  meetings  of  a  council,  if  the 
parties  so  desire.  We  are  also  of  opinion  that  the  Government 
should  undertake  to  supply  to  the  various  councils  such  informa- 
tion on  industrial  subjects  as  may  be  available  and  likely  to  prove 
of  value. 

20.  It  has  been  suggested  that  means  must  be  devised  to  safe- 
guard the  interests  of  the  community  against  possible  action  of 
an  anti-social  character  on  the  part  of  the  councils.  We  have, 
however,  here  assumed  that  the  councils,  in  their  work  of  pro- 
moting the  interests  of  their  own  industries,  will  have  regard  for 
the  national  interest.  If  they  fulfill  their  functions  they  will  be 
the  best  builders  of  national  prosperity.  The  State  never  parts 
with  its  inherent  overriding  power,  but  such  power  may  be  least 
needed  when  least  obtruded. 

21.  It  appears  to  us  that  it  may  be  desirable  at  some  later 
stage  for  the  State  to  give  the  sanction  of  law  to  agreements  made 
by  the  councils,  but  the  initiative  in  this  direction  should  come 
from  the  councils  themselves. 

22.  The  plans  sketched  in  the  foregoing  paragraphs  are  ap- 
plicable in  the  form  in  which  they  are  given  only  to  industries  in 
which  there  are  responsible  associations  of  employers  and  work- 
people which  can  claim  to  be  fairly  representative.  The  case  of 
the  less  well  organized  trades  or  sections  of  a  trade  necessarily 
needs  further  consideration.  We  hope  to  be  in  a  position  shortly 
to  put  forward  recommendations  that  will  prepare  the  way  for 
the  active  utilization  in  these  trades  of  the  same  practical  cooper- 
ation as  is  foreshadowed  in  the  proposals  made  above  for  the 
more  highly  organized  trades. 

23.  It  may  be  desirable  to  state  here  our  considered  opinion 
that  an  essential  condition  of  securing  a  permanent  improvement 
in  the  relations  between  employers  and  employed  is  that  there 
should  be  adequate  organization  on  the  part  of  both  employers 
and  workpeople.  The  proposals  outlined  for  joint  cooperation 
throughout  the  several  industries  depend  for  their  ultimate  suc- 
cess upon  there  being  such  organization  on  both  sides;  and  such 
organization  is  necessary  also  to  provide  means  whereby  the  ar- 
rangements and  agreements  made  for  the  industry  may  be  effect- 
ively carried  out. 

24.  We  have  thought  it  well  to   refrain   from   making  sug- 


THE  LABOR  PROBLEM  IN  ENGLAND  149 

gestions  or  offering  opinions  with  regard  to  such  matters  as 
profit  sharing,  copartnership,  or  particular  systems  of  wages,  etc. 
It  would  be  impracticable  for  us  to  make  any  useful  general 
recommendations  on  such  matters,  having  regard  to  the  varying 
conditions  in  different  trades.  We  are  convinced,  moreover, 
that  a  permanent  improvement  in  the  relations  between  em- 
ployers and  employed  must  be  founcied  upon  something  other  than 
a  cash  basis.  What  is  wanted  is  that  the  workpeople  should  have 
a  greater  opportunity  of  participating  in  the  discussion  about 
and  adjustment  of  those  parts  of  industry  by  which  they  are  most 
affected. 

25.  The  schemes  recommended  in  this  report  are  intended  not 
merely  for  the  treatment  of  industrial  problems  when  they  have 
become  acute,  but  also,  and  more  especially,  to  prevent  their  be- 
coming acute.  We  believe  that  regular  meetings  to  discuss  in- 
dustrial questions,  apart  from  and  prior  to  any  differences  with 
regard  to  them  that  may  have  begun  to  cause  friction,  will  ma- 
terially reduce  the  number  of  occasions  on  which,  in  the  view  of 
either  employers  or  employed,  it  is  necessary  to  contemplate 
recourse  to  a  stoppage  of  work. 

26.  We  venture  to  hope  that  representative  men  in  each  in- 
dustry, with  pride  in  their  calling  and  care  for  its  place  as  a  con- 
tributor to  the  national  well-being,  will  come  together  in  the 
manner  here  suggested  and  apply  themselves  to  promoting  in- 
dustrial harmony  and  efficiency  and  removing  the  obstacles  that 
have  hitherto  stood  in  the  way. 

We  have  the  honor  to  be,  sir, 
Your  obedient  servants, 

J.  H.  Whitley,  Chairman;  F.  S.  Button,  Geo.  J.  Carter,  S.  J. 
Chapman,  G.  H.  Claughton,  J.  R.  Clynes,  J.  A.  Hobson,  A.  Susan 
Lawrence,  J.  J.  Mallon,  Thos.  R.  Ratcliffe-Ellis,  Robt.  Smillie, 
Allan  M.  Smith,  Mona  Wilson.  H.  J.  Wilson,  Arthur  Greenwood, 
Secretaries. 

March  8,  1917. 

appendix 

The  following  questions  were  addressed  by  the  reconstruction 
committee  to  the  subcommittee  on  the  relations  between  employers 
and  employed  in  order  to  make  clear  certain  points  which  appeared 
to  call  for  further  elucidation.    The  answers  given  are  subjoined. 

Q.  I.  In  what  classes  of  industries  does  the  interim  report  pro- 
pose that  industrial  councils  shall  be  established?  What  basis 
of  classification  has  the  subcommittee  in  view? 

A.  I.     It  has  been  suggested  that,  for  the  purpose  of  consider- 


ISO    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

ing  the  establishment  of  industrial  councils,  or  other  bodies  de- 
signed to  assist  in  the  improvement  of  relations  between  employers 
and  employed,  the  various  industries  should  be  grouped  into  three 
classes — (a)  industries  in  which  organization  on  the  part  of 
employers  and  employed  is  sufficiently  developed  to  render  the 
councils  representative;  (b)  industries  in  which  either  as  regards 
employers  and  employed,  or  both,  the  degree  of  organization, 
though  considerable,  is  less  marked  than  in  (a)  and  is  insuffi- 
cient to  be  regarded  as  representative;  and  (c)  industries  in 
which  organization  is  so  imperfect,  either  as  regards  employers 
or  employed,  or  both,  that  no  associations  can  be  said  adequately 
to  represent  those  engaged  in  the  trade. 

It  w^ill  be  clear  that  an  analysis  of  industries  will  show  a  num- 
ber which  are  on  the  border  lines  between  these  groups,  and  special 
consideration  will  have  to  be  given  to  such  trades.  So  far  as 
groups  (c)  and  (c)  are  concerned,  a  fairly  large  number  of  trades 
can  readily  be  assigned  to  them;  group  (b)  is  necessarily  more 
indeterminate. 

For  trades  in  group  (a)  the  committee  have  proposed  the  estab- 
lishment of  joint  standing  industrial  councils  in  the  several  trades. 
In  dealing  with  the  various  industries  it  may  be  necessary  to  con- 
sider specially  the  case  of  parts  of  industries  in  group  (a)  where 
organization  is  not  fully  developed. 

Q.  2.  Is  the  ^machinery  proposed  intended  to  be  in  addition 
to  or  in  substitution  for  existing  machinery?  Is  it  proposed  that 
existing  machinery  should  be  superseded?  By  "existing  machin- 
ery" is  meant  conciliation  boards  and  all  other  organisations  for 
joint  conference  and  discussion  betzveen  employers  and  employed. 

A.  2.  In  most  organized  trades  there  already  exist  joint  bodies 
for  particular  purposes.  It  is  not  proposed  that  the  industrial 
councils  should  necessarily  disturb  these  existing  bodies.  A  coun- 
cil would  be  free,  if  it  chose  and  if  the  bodies  concerned  approved, 
to  merge  existing  committees,  etc.,  in  the  council  or  to  link  them 
with  the  council  as  subcommittees. 

Q.  3.  Is  it  understood  that  membership  of  the  councils  is  to  be 
confined  to  representatives  elected  by  employers'  associations  and 
trade  unions?  What  is  the  view  of  the  subcommittee  regarding 
the  entry  of  new  organisations  established  after  the  councils  have 
been  set  up? 

A.  3.  It  is  intended  that  the  councils  should  be  composed  only 
of  representatives  of  trade  unions  and  employers'  associations,  and 
that  new  organizations  should  be  admitted  only  with  the  approval 
of  the  particular  side  of  the  council  of  which  the  organization 
would  form  a  part. 


THE  LABOR  PROBLEM  IN  ENGLAND  151 

Q.  4.  (a)  Is  it  intended  that  decisions  reached  by  the  councils 
shall  be  binding  upon  the  bodies  comprising  them?  If  so,  is  such 
bmding  effect  to  be  conditional  upon  the  consent  of  each  em- 
ployers' association  or  trade  union  affected? 

A.  4.  (c)  It  is  contemplated  that  agreements  reached  by  in- 
dustrial councils  should  (whilst  not  of  course  possessing  the  bind- 
ing force  of  law)  carry  with  them  the  same  obligation  of  observ- 
ance as  exists  in  the  case  of  other  agreements  between  employers' 
associations  and  trade  unions.  A  council  being  on  its  workmen's 
side  based  on  the  trade  unions  concerned  in  the  industry,  its 
powers  or  authority  could  only  be  such  as  the  constituent  trade 
unions  freely  agreed  to. 

Q.  4.  (b)  In  partictdar,  is  it  intended  that  all  pledges  given 
either  by  the  Government  or  employers  for  the  restoration  of 
trade-union  rules  and  practices  after  the  war  shall  be  redeemed 
without  qualification  unless  the  particular  trade  union  concerned 
agrees  to  alteration;  or,  on  the  contrary,  that  the  industrial  coun- 
cil shall  have  power  to  decide  such  questions  by  a  majority  vote  of 
the  workmen's  representatives  from  all  the  trade  unions  in  the 
industry? 

A.  4.  (&)  It  is  clearly  intended  that  all  pledges  relating  to  the 
restoration  of  trade  union  rules  shall  be  redeemed  without  qualifi- 
cation unless  the  particular  trade  union  concerned  agrees  to 
alteration ;  and  it  is  not  intended  that  the  council  shall  have  power 
to  decide  such  questions  by  a  majority  vote  of  the  workmen's 
representatives  from  all  the  trade  unions  in  the  industry. 

(c)  Comment  of  the  Minister  of  Labor  on  Joint  Standing  In- 
dustrial Councils.'^ 

To  answer  certain  questions  which  have  been  raised  regarding 
the  purpose  of  establishing  industrial  councils,  the  Minister  of 
Labor,  under  date  of  October  20,  191 7,  addressed  the  following 
letter  to  the  leading  employers'  associations  and  trade  unions, 
explaining  in  full  the  Government's  view  of  the  proposals  of  the 
report: 

Sir:  In  July  last  a  circular  letter  was  addressed  by  the  Ministry 
of  Labor  to  all  the  principal  employers'  associations  and  trade 
unions  asking  for  their  views  on  the  proposals  made  in  the  report 

"Great  Britain.  Ministry  of  Labor.  Industrial  Reports.  No.  i.  In- 
dustrial councils.  The  Whitley  Report,  together  with  the  letter  of  the 
Minister  of  Labor  explaining  the  Government's  view  of  its  proposals. 
191 7.     19  pp.     Reprinted  in  Monthly  Labor  Review,  March,  1918. 


152     LABOR  AND  RECONSTRUCTION  IN  EUROPE 

of  the  Whitley  committee  on  joint  standing  industrial  councils,  a 
further  copy  of  which  is  inclosed.  As  a  result  of  the  replies  which 
have  been  received  irom  a  large  number  of  employers'  organ- 
izations and  trade  unions  generally  favoring  the  adoption  of  those 
proposals,  the  War  Cabinet  have  decided  to  adopt  the  report  as 
part  of  the  policy  which  they  hope  to  see  carried  into  effect  in  the 
field  of  industrial   reconstruction. 

In  order  that  the  precise  effect  of  this  decision  may  not  be 
misunderstood,  I  desire  to  draw  attention  to  one  or  two  points 
which  have  been  raised  in  the  communications  made  to  the  min- 
istry on  the  subject,  and  on  which  some  misapprehension  appears 
to  exist  in  some  quarters. 

In  the  first  place,  fears  have  been  expressed  that  the  proposal 
to  set  up  industrial  councils  indicates  an  intention  to  introduce 
an  element  of  State  interference,  which  has  hitherto  not  existed 
in  industry.  This  is  not  the  case.  The  formation  and  constitution 
of  the  councils  must  be  principally  the  work  of  the  industries 
themselves.  Although,  for  reasons  which  will  be  explained  later, 
the  Government  is  very  anxious  that  such  councils  should  be 
established  in  all  the  well  organized  industries  with  as  little  delay 
as  possible,  they  fully  realize  that  the  success  of  the  scheme  must 
depend  upon  a  general  agreement  among  the  various  organizations 
within  a  given  industry  and  a  clearly  expressed  demand  for  the 
creation  of  a  council.  Moreover,  when  formed,  the  councils 
would  be  independent  bodies,  electing  their  own  officers,  and  free 
to  determine  their  own  functions  and  procedure  with  reference 
to  the  peculiar  needs  of  each  trade.  In  fact,  they  would  be 
autonomous  bodies,  and  they  would,  in  effect,  make  possible  a 
larger  degree  of  self-government  in  industry  than  exists  to-day. 

Secondly,  the  report  has  been  interpreted  as  meaning  that  the 
general  constitution  which  it  suggests  should  be  applied  without 
modification  to  each  industry.  This  is  entirely  contrary  to  the 
view  of  the  Government  on  the  matter.  To  any  one  with  a  knowl- 
edge of  the  diverse  kinds  of  machinery  already  in  operation  and 
the  varying  geographical  and  industrial  conditions  which  affect 
different  industries,  it  will  be  obvious  that  no  rigid  scheme  can 
be  applied  to  all  of  them.  Each  industry  must  therefore  adapt  the 
proposals  made  in  the  report  as  may  seem  most  suitable  to  its  own 
needs.  In  some  industries,  for  instance,  it  may  be  considered  by 
both  employers  and  employed  that  a  system  of  works  committees  is 
unnecessary,  owing  to  the  perfection  of  the  arrangements  already 
in  operation  for  dealing  with  the  difficulties  arising  in  particular 
works  between  the  management  and  the  trade  union  officials.  In 
others  works  committees  have  done  very  valuable  work  where 


THE  LABOR  PROBLEM  IN  ENGLAND  153 

they  have  been  introduced  and  their  extension  on  agreed  lines 
deserves  every  encouragement.  Again  in  industries  which  are 
largely  based  on  district  organizations  it  will  probably  be  found 
desirable  to  assign  more  important  functions  to  the  district  coun- 
cils than  would  be  the  case  in  trades  which  are  more  completely 
centralized  in  national  bodies.  All  these  questions  will  have  to 
be  thrashed  out  by  the  industries  themselves  and  settled  in  har- 
mony with  their  particular  needs. 

Thirdly,  it  should  be  made  clear  that  representation  on  the 
industrial  councils  is  intended  to  be  on  the  basis  of  existing 
organizations  among  employers  and  workmen  concerned  in  each 
industry,  although  it  will,  of  course,  be  open  to  the  councils,  when 
formed,  to  grant  representation  to  any  new  bodies  which  may 
come  into  existence  and  which  may  be  entitled  to  representation. 
The  authority  and  consequently  the  usefulness  of  the  councils 
will  depend  entirely  on  the  extent  to  which  they  represent  the 
different  interests  and  enjoy  the  whole-hearted  support  of  the 
existing  organizations,  and  it  is  therefore  desirable  that  repre- 
sentation should  be  determined  on  as  broad  a  basis  as  possible. 

Lastly,  it  has  been  suggested  tha*  the  scheme  is  intended  to 
promote  compulsory  arbitration.  This  is  certainly  not  the  case. 
Whatever  agreernents  may  be  made  for  dealing  with  disputes 
must  be  left  to  the  industry  itself  to  frame,  and  their  efficacy 
must  depend  upon  the  voluntary  cooperation  of  the  organizations 
concerned  in  carrying  them  out. 

I  should  now  like  to  explain  some  of  the  reasons  which  have 
made  the  Government  anxious  to  see  industrial  councils  estab- 
lished as  soon  as  possible  in  the  organized  trades.  The  experience 
of  the  war  has  shown  the  need  for  frequent  consultation  between 
the  Government  and  the  chosen  representatives  of  both  employers 
and  workmen  on  vital  questions  concerning  those  industries  which 
have  been  most  affected  by  war  conditions.  In  some  instances 
different  Government  departments  have  approached  different 
organizations  in  the  same  industry,  and  in  many  cases  the  absence 
of  joint  representative  bodies,  which  can  speak  for  their  in- 
dustries as  a  whole  and  voice  the  joint  opinion  of  em- 
ployers and  workmen,  has  been  found  to  render  negotiations 
much  more  difficult  than  they  would  otherwise  have  been.  The 
case  of  the  cotton  trade,  where  the  industry  is  being  regulated 
during  a  very  difficult  time  by  a  joint  board  of  control,  indicates 
how  greatly  the  task  of  the  State  can  be  alleviated  by  a  self-gov- 
erning body  capable  of  taking  charge  of  the  interests  of  the  whole 
industry.  The  problems  of  the  period  of  transition  and  recon- 
struction will  not  be  less  difficult  than  those  which  the  war  has 


154    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

created,  and  the  Government  accordingly  feel  that  the  task  of 
rebuilding  the  social  and  economic  fabric  on  a  broader  and  surer 
foundation  will  be  rendered  much  easier  if  in  the  organized  trades 
there  exist  representative  bodies  to  which  the  various  questions 
of  difficulty  can  be  referred  for  consideration  and  advice  as  they 
arise.  There  are  a  number  of  such  questions  on  which  the  Govern- 
ment will  need  the  united  and  considered  opinion  of  each  large 
industry,  such  as  the  demobilization  of  the  forces,  the  resettlement 
of  munition  workers  in  civil  industries,  apprenticeship  (especially 
where  interrupted  by  war  service),  the  training  and  employment 
of  disabled  soldiers,  and  the  control  of  raw  materials;  and  the 
more  it  is  able  to  avail  itself  of  such  an  opinion  the  more  satis- 
factory and  stable  the  solution  of  these  questions  is  likely  to  be. 

Further,  it  will  be  necessary  in  the  national  interest  to  insure 
a  settlement  of  the  more  permanent  questions  which  have  caused 
differences  between  employers  and  employed  in  the  past,  on  such 
a  basis  as  to  prevent  the  occurrence  of  disputes  and  of  serious 
stoppages  in  the  difficult  period  during  which  the  problems  just 
referred  to  will  have  to  be  solved.  It  is  felt  that  this  object  can 
only  be  secured  by  the  existence  of  permanent  bodies  on  the  lines 
suggested  by  the  Whitley  Report,  which  will  be  capable  not  merely 
of  dealing  with  disputes  when  they  arise,  but  of  settling  the  big 
questions  at  issue  so  far  as  possible  on  such  a  basis  as  to  prevent 
serious  conflicts  arising  at  all. 

The  above  statement  of  the  functions  of  the  councils  is  not 
intended  to  be  exhaustive,  but  only  to  indicate  some  of  the  more 
immediate  questions  which  they  will  be  called  upon  to  deal  with 
when  set  up.  Their  general  objects  are  described  in  the  words 
of  the  report  as  being  "to  offer  to  workpeople  the  means  of 
attaining  improved  conditions  of  employment  and  a  higher  stand- 
ard of  comfort  generally,  and  involve  the  enlistment  of  their 
active  and  continuous  cooperation  in  the  promotion  of  industry." 
Some  further  specific  questions,  which  the  councils  might  con- 
sider, were  indicated  by  the  committee  in  paragraph  i6  of  the 
report,  and  it  will  be  for  the  councils  themselves  to  determine 
what  matters  they  shall  deal  with.  Further,  such  councils  would 
obviously  be  the  suitable  bodies  to  make  representations  to  the 
Government  as  to  legislation  which  they  think  would  be  of  ad- 
vantage to  their  industry. 

In  order,  therefore,  that  the  councils  may  be  able  to  fulfill  the 
duties  which  they  will  be  asked  to  undertake,  and  that  they  may 
have  the  requisite  status  for  doing  so,  the  Government  desire  it  to 
be  understood  that  the  councils  will  be  recognized  as  the  official 


THE  LABOR  PROBLEM  IN  ENGLAND  155 

standing  consultative  committees  to  the  Government  on  all  future 
questions  affecting  the  industries  which  they  represent,  and  that 
they  will  be  the  normal  channel  through  which  the  opinion  and  ex- 
perience of  an  industry  will  be  sought  on  all  questions  with  which 
the  industry  is  concerned.  It  will  be  seen,  therefore,  that  it  is 
intended  that  industrial  councils  should  play  a  definite  and 
permanent  part  in  the  economic  life  of  the  country,  and  the  Gov- 
ernment feel  that  they  can  rely  on  both  employers  and  workmen 
to  cooperate  in  order  to  make  that  part  a  worthy  one. 

I  hope,  therefore,  that  you  will  take  this  letter  as  a  formal  re- 
quest to  your  organization  on  the  part  of  the  Government  to 
consider  the  question  of  carrying  out  the  recommendations  of 
the  report  so  far  as  they  are  applicable  to  your  industry.  The 
Ministry  of  Labor  will  be  willing  to  give  every  assistance  in  its 
power  in  the  establishment  of  industrial  councils  and  will  be  glad 
to  receive  suggestions  as  to  the  way  in  which  it  can  be  given 
most  effectively.  In  particular,  it  will  be  ready  to  assist  in  the 
convening  of  representative  conferences  to  discuss  the  establish- 
ment of  councils,  to  provide  secretarial  assistance,  and  to  be  repre- 
sented, if  desired,  in  a  consultative  capacity  at  the  preliminary 
meetings.  The  Ministry  will  be  glad  to  be  kept  informed  of  any 
progress  made  in  the  direction  of  forming  councils.  Although 
the  scheme  is  only  intended,  and  indeed  can  only  be  applied,  in 
trades  which  are  well  organized  on  both  sides,  I  would  point  out 
that  it  rests  with  those  trades  which  do  not  at  present  possess  a 
sufficient  organization  to  bring  it  about  if  they  desire  to  apply  it 
to  themselves. 

In  conclusion,  I  would  again  emphasize  the  pressing  need  for 
the  representative  organizations  of  employers  and  workpeople  to 
come  together  in  the  organized  trades  and  to  prepare  themselves 
for  the  problems  of  reconstruction  by  forming  councils  competent 
to  deal  with  them.  The  Government  trust  that  they  will  approach 
these  problems  not  as  two  opposing  forces  each  bent  on  getting 
as  much  and  giving  as  little  as  can  be  contrived,  but  as  forces 
having  a  common  interest  in  working  together  for  the  welfare  of 
their  industry,  not  merely  for  the  sake  of  those  concerned  in  it, 
but  also  for  the  sake  of  the  Nation,  which  depends  so  largely  on 
its  industries  for  its  well-being.  If  the  spirit  which  has  enabled 
all  classes  to  overcome  by  willing  cooperation  the  innumerable 
dangers  and  difficulties  which  have  beset  us  during  the  war  is 
applied  to  the  problems  of  reconstruction,  I  am  convinced  that 
they  can  be  solved  in  a  way  which  will  lay  the  foundation  of  the 


156    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

future   prosperity  of  the   country  and   of  those  engaged  in  its 
great  industries. 
I  am,  sir,  your  obedient  servant, 

Geo.  H.  Roberts. 

(d)  Second  Report  on  Joint  Standing  Industrial  Councils.''* 

The  Second  Report  on  Joint  Standing  Industrial  Councils, 
which  has  been  prepared  by  the  Committee  on  Relations  between 
Employers  and  Employed,  deals  especially  with  industries  in 
which  organization  on  the  part  of  employers  and  employed  is 
less  completely  established  than  in  the  industries  covered  by 
the  first  interim  report  and  with  industries  in  which  such  organ- 
ization is  weak  or  nonexistent. 

For  convenience  of  consideration  the  committee  have  divided 
the  industries  of  the  country  into  three  groups: 

Group  A. — Consisting  of  industries  in  which  organization  on 
the  part  of  employers  and  employed  is  sufficiently  developed  to 
render  their  respective  associations  representative  of  the  great 
majority  of  those  engaged  in  the  industry. 

Group  B. — Comprising  those  industries  in  which,  either  as 
regards  employers  and  employed,  or  both,  the  degree  of  organiza- 
tion, though  considerable,  is  less  marked  than  in  Group  A. 

Group  C. — Consisting  of  industries  in  which  organization  is  so 
imperfect,  either  as  regards  employers  or  employed,  or  both,  that 
no  associations  can  be  said  adequately  to  represent  those  engaged 
in  the  industry. 

In  the  more  highly  organized  industries  (Group  A)  the  com- 
mittee have,  in  their  first  report,  proposed  a  triple  organization  of 
national,  district,  and  workshop  bodies.  In  industries  where  there 
are  representative  associations  of  employers  and  employed,  which, 
however,  do  not  possess  the  authority  of  those  in  Group  A  in- 
dustries, they  now  propose  that  the  triple  organization  should  be 
modified  by  attaching  to  each  National  Industrial  Council  one  or 
two  representatives  of  the  Ministry  of  Labor  to  act  in  an  ad- 
visory capacity.  In  industries  in  both  Groups  A  and  B  they  pro- 
pose that  unorganized  areas  or  branches  of  an  industry  should  be 
provided  with  trade  boards  for  such  areas  or  branches,  the  trade 

'*  From  the  Labour  Gazette  of  the  Ministry  of  Labor,  Great  Britain, 
March,  1918;  reprinted  in  the  Monthly  Labor  Review,  Washington, 
May,  1918. 


THE  LABOR  PROBLEM  IN  ENGLAND  157 

boards  being  linked  with  the  industrial  council.  In  industries  hav- 
ing no  adequate  organization  of  employers  or  employed,  it  is 
recommended  that  trade  boards  should  be  established,  and  that 
these  should  be  enabled  to  formulate  a  scheme  for  an  industrial 
council. 

Briefly,  the  proposals  are  that  the  extent  of  State  assistance 
should  vary  inversely  with  the  degree  of  organization  in  indus- 
tries. The  committee  do  not,  however,  regard  Government  assist- 
ance as  an  alternative  to  the  organization  of  employers  and  em- 
ployed. On  the  contrary,  they  regard  it  as  a  means  of  furthering 
the  growth  and  development  of  such  organization. 

The  proposals  which  are  set  forth  do  not  require  legislation 
except  on  three  points,  namely,  to  provide  (i)  that  the  trade 
boards  shall  have  power,  in  addition  to  determining  minimum 
rates  of  wages,  to  deal  with  hours  of  labor  and  questions  cognate 
to  wages  and  hours;  (2)  that  the  trade  boards  shall  have  power 
to  initiate  inquiries  and  make  proposals  to  the  Government  de- 
partments concerned  on  matters  affecting  the  industrial  condi- 
tions of  the  trade,  as  well  as  on  questions  of  general  interest  to 
the  industries  concerned  respectively;  (3)  that  when  an  industrial 
council  sufficiently  representative  of  an  industry  makes  applica- 
tion, the  Minister  of  Labor  shall  have  power  to  make  an  order 
instituting  for  a  section  of  the  industry  a  trade  board  on  which 
the  industrial  council  shall  be  represented,  or  constituting  the 
council  a  trade  board  under  the  Trade  Boards  Act. 

The  proposals  must  necessarily  be  adapted  to  meet  the  vary- 
ing needs  and  circumstances  of  different  industries,  and  there 
will  hardly  be  uniformity  in  practice.  The  recommendations  are 
intended  merely  to  set  forth  the  main  line  of  development  be- 
lieved to  be  essential  to  insure  better  relations  between  employers 
and  employed.  The  application  of  the  recommendations  to  the 
several  industries  can  be  safely  left  to  those  intimately  concerned 
with  the  conviction  that  the  flexibility  and  adaptability  of  in- 
dustrial organizations  which  have  been  so  large  a  factor  in 
enabling  industry  to  stand  the  enormous  strain  of  the  war  will 
not  fail  the  country  when  peace  returns. 

(e)  Workshop  Committees T"  The  Committee  on  "Relations 
between  Employers  and  Employed"  (the  Whitley  Committee) 
of  the  Ministry  of  Reconstruction  have  presented  a  supple- 
mentary report  on  "works  committees" — that  is,  joint  committees 
of  employers  and  employed  in  each  factory,  workshop,  or  coal 

"From  British  Board  of  Trade  Journal,  Mar.  21,  1918,  p.  342. 


158    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

pit,  the  formation  of  which  was  advocated  in  the  first  Whitley 
Report. 

It  is  pointed  out  that  in  every  industry  there  are  certain  ques- 
tions, such  as  rates  of  wages  and  hours  of  work,  which  should 
be  settled  by  district  or  national  agreement.  With  any  matter 
so  settled,  no  works  committee  should  interfere.  But  there  are 
also  many  questions  affecting  daily  life  and  comfort,  the  success 
of  the  business,  and  the  efficiency  of  working  which  are  peculiar 
to  each  individual  workshop  or  factory.  The  purpose  of  a  works 
committee  is  to  establish  and  maintain  a  system  of  friendly 
cooperation  and  discussion  between  employers  and  employed  on 
all  these  matters. 

"The  success  of  works  committees  would  be  very  seriously 
interfered  with  if  the  idea  existed  that  they  were  used  or  were 
likely  to  be  used  by  employers  in  opposition  to  trade  unionism. 
It  is  strongly  felt  that  the  setting  up  of  works  committees  with- 
out the  cooperation  of  the  trade  unions  and  the  employers'  asso- 
ciations in  the  trade  would  stand  in  the  way  of  the  improved 
industrial  relationships  which  in  these  Reports  we  are  trying  to 
further." 

"Works  committees  should  have  regular  meetings,  at  fixed 
times,  as  a  general  rule  not  less  frequently  than  once  a  fortnight. 
They  should  always  keep  in  the  forefront  the  idea  of  constructive 
cooperation  in  the  improvement  of  the  industry  to  which  they 
belong.  Suggestions  of  all  kinds  tending  to  improvement  should 
be  frankly  welcomed  and  freely  discussed.  There  is  an  undevel- 
oped asset  of  constructive  ability — valuable  alike  to  the  indus- 
try and  to  the  State — awaiting  the  means  of  realization.  Prob- 
lems, old  and  new,  will  find  their  solution  in  a  frank  partnership 
of  knowledge,  experience  and  good  will.  Works  committees 
would  fail  in  their  main  purpose  if  they  existed  only  to  smooth 
over  grievances." 

"The  successful  development  and  utilization  of  works  com- 
mittees in  any  business  on  the  basis  recommended  in  this  report 
is  of  equal  importance  with  its  commercial  and  scientific  effi- 
ciency. In  every  case  one  of  the  partners  or  directors,  or  some 
other  responsible  representative  of  the  management,  would  be 
well  advised  to  devote  a  substantial  part  of  his  time  and  thought 
to  the  good  working  and  development  of  such  a  committee." 


THE  LABOR  PROBLEM  IN  ENGLAND  159 

(/)  Final  Report  of  the  Whitley  Committee!'^  "We  wish  to 
reaffirm  our  conviction  expressed  in  the  first  report  of  the  urgency 
of  the  matter.  In  our  opinion  there  is  pressing  need  that  every 
organized  industry  should  equip  itself  with  a  representative  ma- 
chinery capable  of  dealing  with  the  large  questions  of  common 
interest  to  employers  and  employed  arising  in  war  time,  during 
demobilization,  and  in  the  period  after  the  war. 

"Further,  we  believe  that  when  the  joint  councils  have  gained 
confidence  and  experience  in  dealing  with  the  urgent  problems 
of  the  moment  they  will  find  their  sphere  of  usefulness  to  be 
much  wider  than  they  themselves  imagined  at  their  first  incep- 
tion. Similarly,  works  committees,  beginning  perhaps  with  lim- 
ited functions,  will,  we  anticipate,  without  in  any  way  trenching 
upon  matters  appropriate  to  the  industrial  councils,  find  a  contin- 
ual growth  in  the  list  of  questions  appertaining  to  the  individual 
factory  or  workshop  that  can  be  dealt  with  by  mutual  agreement. 

"We  have  purposely  refrained  from  making  proposals  in 
detail  with  regard  to  the  constitution  of  the  councils  and  com- 
mittees, or  the  scope  of  their  functions,  because  we  are  con- 
vinced that  this  can  only  be  done  satisfactorily  by  the  people 
engaged  in  an  industry  and  familiar  with  all  its  circumstances." 

{g)  Joint  Standing  Councils  Established.  There  were  in  Octo- 
ber, 1918,  eleven  trades  in  which  Joint  Standing  Councils  of 
Employers  and  Employees  were  established,  including  the  pot- 
tery industry,  the  first  to  adopt  the  plan,  and  the  building  trades, 
the  heavy  chemicals  industry,  the  match  makers,  bakers,  and 
vehicle  builders,  and  the  rubber  goods,  furniture,  and  china  clay 
industries.''^ 

The  pottery  industry  has  issued  a  statement  on  the  objects  of 
the  council,  as  follows: 

Objects  of  the  Council.'"  The  advancement  of  the  pottery  in- 
dustry and  of  all  connected  with  it  by  the  association  in  its  gov- 
ernment of  all  engaged  in  the  industry. 

It  will  be  open  to  the  council  to  take  any  action  that  falls  within 
the  scope  of  its  general  object.  Its  chief  work  will,  however,  fall 
under  the  following  heads : 

'"Journal  of  Commerce,  New  York,  Oct.  5,  1918. 
"Labour  Gazette,  London,  October,  1918. 

''"Labour  Gazette,  London,  February,  1918,  p.  49,  also  reprinted  in  the 
Monthly  Review  of  the  Bureau  of  Labor  Statistics,  April,  1918. 


i6o    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

(a)  The  consideration  of  means  whereby  all  manufacturers  and 
operatives  shall  be  brought  within  their   respective  associations. 

(b)  Regular  consideration  of  wages,  piecework  prices,  and  con- 
ditions, with  a  view  to  establishing  and  maintaining  equitable 
conditions  throughout  the  industry. 

(c)  To  assist  the  respective  associations  in  the  maintenance  of 
such  selling  prices  as  will  afiford  a  reasonable  remuneration  to 
both  employers  and  employed. 

(d)  The  consideration  and  settlement  of  all  disputes  between 
different  parties  in  the  industry  which  it  may  not  have  been  pos- 
sible to  settle  by  the  existing  machinery,  and  the  establishment 
of  machinery  for  dealing  with  disputes  where  adequate  machinery 
does  not  exist. 

(e)  The  regularization  of  production  and  employment  as  a 
means  of  insuring  to  the  workpeople  the  greatest  possible  security 
of  earnings. 

(/)  Improvement  in  conditions  with  a  view  to  removing  all 
danger  to  health  in  the  industry. 

(g)  The  study  of  processes,  the  encouragement  of  research,  and 
the  full  utilization  of  their  results. 

(h)  The  provision  of  facilities  for  the  full  consideration  and 
utilization  of  inventions  and  improvements  designed  by  work- 
people and  for  the  adequate  safeguarding  of  the  rights  of  the 
designs  of  such  improvements. 

(i)   Education  in  all  its  branches  for  the  industry. 

(/)  The  collection  of  full  statistics  on  wages,  making  and  sell- 
ing prices,  and  average  percentages  of  profits  on  turnover,  and  on 
materials,  markets,  costs,  etc.,  and  the  study  and  promotion  of 
scientific  and  practical  systems  of  costing  to  this  end. 

All  statistics  shall,  where  necessary,  be  verified  by  chartered 
accountants,  who  shall  make  a  statutory  declaration  as  to  secrecy 
prior  to  any  investigation,  and  no  particulars  of  individual  firms 
or  operatives  shall  be  disclosed  to  any  one. 

(k)  Inquiries  into  problems  of  the  industry,  and  where  desir- 
able, the  publication  of  reports. 

(I)  Representation  of  the  needs  and  opinions  of  the  industry 
to  Government  authorities,  central  and  local,  and  to  the  com- 
munity generally. 

(k)  Report  on  Conciliation  and  Arbitration,  August,  1918. 
The  Whitley  Committee  also  reported  on  the  methods  of  con- 
ciliation and  arbitration,  in  conjunction  with  the  working  of 
the  Joint  Standing  Councils.    Extracts  from  the  report  follow: 


THE  LABOR  PROBLEM  IN  ENGLAND  i6i 

Report  on  Conciliation  and  Arbitration!"  We  believe  that  the 
recommendations  made  in  our  earlier  reports  for  the  establish- 
ment of  industrial  councils  will  provide  facilities  for  full  and  free 
discussion  of  matters  affecting  the  several  industries  and  so 
improve  the  relations  between  employers  and  employed.  We  have 
thought  it  necessary,  however,  to  give  some  attention  to  the 
cases  in  which  the  parties  may  desire  voluntarily  to  refer  some 
difference  that  has  arisen  to  arbitration  or  conciliation.  But  it 
must  be  understood  that  we  do  not  intend  to  express  any  views 
on  the  extent  to  which  disputes  can  be  equitably  or  satisfactorily 
settled  in  this  way.  As  regards  arbitration,  our  sole  concern  in 
this  report  is  with  the  question  of  the  machinery  to  be  provided 
when  it  is  the  expressed  wish  of  both  parties,  for  any  reason,  to 
have  recourse  to  it. 

2.  We  are  opposed  to  any  system  of  compulsory  arbitration; 
there  is  no  reason  to  believe  that  such  a  system  is  generally 
desired  by  employers  and  employed,  and,  in  the  absence  of  such 
general  acceptance,  it  is  obvious  that  its  imposition  would  lead  to 
unrest.  The  experience  of  compulsory  arbitration  during  the  war 
has  shown  that  it  is  not  a  successful  method  of  avoiding  strikes, 
and  in  normal  times  it  would  undoubtedly  prove  even  less  suc- 
cessful. Disputes  can  only  be  avoided  by  agreement  between  em- 
ployers and  workers  and  by  giving  to  the  latter  the  greater 
measure  of  interest  in  the  industry  advocated  in  our  former 
reports;  but  agreement  may  naturally  include  the  decision  of  both 
parties  to  refer  any  specified  matter  or  matters  to  arbitration, 
whether  this  decision  is  reached  before  or  after  a  dispute  arises. 

3.  For  the  same  reason  we  do  not  recommend  any  scheme 
relating  to  conciliation  which  compulsorily  prevents  strikes  or 
lockouts  pending  inquiry.  But  it  is  obviously  possible  and  de- 
sirable that  in  some  instances  arrangements  should  be  voluntarily 
made  in  organized  trades  for  holding  an  inquiry  before  recourse 
to  extreme  measures ;  and  we  suggest  that  the  Ministry  of  Labor 
should  be  authorized  to  hold  a  full  inquiry  when  satisfied  that  it 
was  desirable,  without  prejudice  to  the  power  of  the  disputing 
parties  to  declare  a  strike  or  lockout  before  or  during  the  progress 
of  the  inquiry. 

4.  It  is  important  that  it  should  be  clearly  understood  that 
we  do  not  contemplate  the  imposition  of  an  elaborate  system  of 

"  Great  Britain.  Ministry  of  Reconstruction.  Committee  on  rela- 
tions between  employers  and  employed.  Report  on  conciliation  and 
arbitration.  London,  1918.  5  pp.  Cd.  9081,  reprinted  in  the  Monthly 
Labor  Review,  August,  1918. 


1 62    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

conciliation  and  arbitration  upon  industry,  in  place  of  the  present 
well-rccog:nized  voluntary  conciliation  and  arbitration  machinery 
which  exists  in  so  many  of  the  important  trades  of  the  country. 
On  the  contrary,  we  desire  to  emphasize  the  advisability  of  a 
continuance,  as  far  as  possible,  of  the  present  system  whereby 
industries  make  their  own  agreements  and  settle  their  differences 
themselves. 

5.  The  extent  to  which  machinery  for  the  conciliatory  adjust- 
ment of  disputes  exists  in  the  important  trades  of  this  country 
is  one  of  the  most  marked  features  of  its  industrial  organization, 
and  the  valuable  work  that  has  been  done  by  the  numerous  con- 
ciliation and  arbitration  boards  in  the  past  has  rendered  it  possible 
for  the  State  to  remain  very  much  in  the  background.  There 
seems  no  reason  to  suppose  that  after  the  war  these  boards  will 
not  continue  to  work  effectively,  and  it  may  be  (especially  in 
so  far  as  they  may  become  merged  in  or  correlated  with  the  joint 
industrial  councils,  whose  establishment  the  committee  have 
recommended)  that  they  will  achieve  an  even  larger  degree  of 
success  in  securing  the  settlement  of  points  that  may  arise  be- 
tween employers  and  employed,  when  regular  joint  meetings, 
apart  from  any  disputes,  have  been  established,  and  their  benefit 
experienced. 

6.  It  is  desirable,  however,  to  consider  the  part  that  should 
be  taken  by  the  State  in  the  event  of  those  directly  concerned  in 
industry  being  unable  to  adjust  their  differences  themselves.  The 
interest  of  the  community  may  require  that  there  should  be  an 
unbiased  and  independent  examination  of  the  facts  and  circum- 
stances connected  with  any  dispute  between  employers  and  em- 
ployed. 

The  committee  indorse  the  view  that  there  should  be  means  by 
which  an  independent  inquiry  may  be  made  into  the  facts  and 
circumstances  of  a  dispute  and  an  authoritative  pronouncement 
made  thereon,  although  this  does  not  carry  with  it  any  compulsory 
power  of  delaying  strikes  or  lockouts. 

10.  As  arbitrations  affecting  the  same  trade  or  section  of  trades 
may  recur,  there  are  advantages  to  both  employers  and  work- 
people in  knowing  that  the  tribunal  to  which  they  submit  any 
differences  which  they  may  have  failed  themselves  to  settle  is  one 
to  which  previous  differences  have  been  submitted  and  which 
therefore  has  become  to  some  extent  familiar  with  the  conditions 
of  the  trade. 

11.  For  these  reasons  it  would  appear  desirable  that  there 
should  be  a  standing  arbitration  council  to  which  differences  of 
general  principles  and  differences  affecting  whole  industries  or 


THE  LABOR  PROBLEM  IN  ENGLAND  163 

large  sections  of  industries  may  be  referred  in  cases  wnere  the 
parties  have  failed  to  come  to  an  agreement  through  their  ordinary 
procedure  and  wish  to  refer  the  differences  to  arbitration. 

Such  tribunal  should  include  in  its  membership  persons  who 
have  practical  experience  and  knowledge  of  industry  and  who 
are  acquainted  with  the  respective  standpoints  of  employers  and 
workpeople. 

12.  There  are,  however,  certain  administrative  difficulties  con- 
nected with  the  utilization  of  tribunals  of  three  or  more  persons, 
particularly  where  the  parties  desire  that  their  case  should  be 
heard  locally,  and  where  the  matter  is  one  of  relatively  small 
importance,  and  it  is  desirable  that  suitable  persons  should  be 
available  to  act  as  single  arbitrators  where  the  parties  agree  to 
submit  their  case  to  a  single  arbitrator.  Persons  possessing  ex- 
perience of  industrial  conditions  and  acquainted  with  industrial 
and  workshop  life,  including  representatives  of  labor,  would  seem 
the  most  likely  to  command  the  respect  and  confidence  of  the 
parties.  It  will  be  obvious  that  the  efficiency  of  an  arbitrator, 
provided  that  he  possesses  the  right  personal  qualifications,  in- 
creases with  practice  and  the  study  of  the  conditions  with  which 
he  has  to  deal. 

13.  The  question  whether,  and  if  so,  by  what  means,  awards 
of  single  arbitrators  should  be  coordinated  with  the  more  general 
awards  of  the  standing  arbitration  council  is  one  to  be  considered, 
as  there  are  important  reasons  why  the  several  awards  should  not 
conflict. 

The  experience  which  has  been  gained  of  the  various  forms  of 
arbitration  tribunals  suggests  that  there  are  great  advantages  to 
all  parties  in  facilitating  coordination  of  decisions.  Conflicting 
decisions  given  by  different  tribunals  are  bound  to  cause  dis- 
satisfaction to  one  or  the  other  party.  With  the  object  of  avoiding 
such  conflict  as  much  as  possible  it  is  of  paramount  importance 
that  the  department  charged  with  the  appointment  of  arbitrators 
should  be  in  a  position  to  insure  that  the  several  arbitrators  should 
have  opportunities  of  interchanging  views  and  experiences.  The 
means  to  insure  reasonable  coordination  should  be  provided 
through  the  secretariat  of  the  standing  arbitration  council.  The 
awards  and  decisions  of  that  council  would  be  circulated  among 
the  single  arbitrators,  who  would  thus  be  kept  in  touch  with  the 
more  general  and  comprehensive  cases. 

14.  In  order  that  there  might  be  the  requisite  differentiation 
between  questions  of  general  importance  or  principle  and  ques- 
tions of  comparatively  less  importance,  the  department  responsible 
for  referring  cases  of  arbitration   should  pass  all   cases  to  the 


1 64    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

secretariat  of  the  standing  arbitration  council.  The  secretariat 
should  include  a  highly  trained  staff  with  experience  of  industry 
and  knowledge  of  arbitration  work  so  that  proper  differentiation 
would  be  made  between  the  various  cases  and,  subject  to  the  con- 
currence of  the  parties,  the  several  cases  referred  to  the  form  of 
tribunal  most  competent  to  deal  with  them  to  the  satisfaction  of 
those  concerned. 

15.  The  question  whether  awards  and  agreements  should  be 
made  enforceable  by  means  of  monetary  or  other  penalties  was 
examined  exhaustively  by  the  industrial  council  in  an  inquiry 
commenced  in  1912,  and  the  committee  concur  generally  in  the 
views  expressed  in  the  report  made  by  the  council  in  1913  to  the 
effect  that,  w-hile  it  is  to  the  interests  of  both  employers  and  work- 
people and  the  community  generally  that  industrial  agreements 
should  be  duly  fulfilled,  in  the  long  run  this  object  is  more  likely 
to  be  secured  by  an  increased  regard  for  moral  obligation,  respect 
for  an  instructed  public  opinion,  and  reliance  on  the  principles  of 
mutual  consent  rather  than  by  the  establishment  of  a  system  of 
monetary  penalties. 

16.  Our  conclusions,  therefore,  are  that  (a)  whilst  we  are 
opposed  to  any  system  of  compulsory  arbitration,  we  are  in  favor 
of  an  extension  of  voluntary  machinery  for  the  adjustment  of 
disputes.  Where  the  parties  are  unable  to  adjust  their  differences 
we  think  that  there  should  be  means  by  which  an  independent  in- 
quiry may  be  made  into  the  facts  and  circumstances  of  a  dispute, 
and  an  authoritative  pronouncement  made  thereon,  though  we  do 
not  think  that  there  should  be  any  compulsory  power  of  delaying 
strikes  and  lockouts;  (b)  we  further  recommend  that  there  should 
be  established  a  standing  arbitration  council  for  cases  where  the 
parties  wish  to  refer  any  dispute  to  arbitration,  though  it  is  de- 
sirable that  suitable  single  arbitrators  should  be  available  where 
the  parties  so  desire. 

(Signed  by)  J.  H.  Whitley,  Chairman;  F.  S.  Button,  S.  J. 
Chapman,  G.  H.  Claughton,  J.  R.  Clynes,  F.  N.  Hepworth,  Wilfrid 
Hill,  J.  A.  Hobson,  A.  Susan  Lawrence,  Maurice  Levy,  J.  J. 
Mallon,  Thos.  R.  Ratcliffe-Ellis,  Allan  M.  Smith,  D.  R.  H.  Wil- 
liams, Mona  Wilson.     H.  J.  Wilson,  A.  Greenwood,  Secretaries. 

31st  January,  1918. 


THE  LABOR  PROBLEM  IN  ENGLAND     165 


Social  Reconstruction  Program  of  the  British  Labor  Party}'^ 

The  report  on  the  general  policy  of  the  British  Labor  Party 
on  "Reconstruction"  was  prepared  by  a  subcommittee  of  the 
party.  It  was  submitted  by  the  executive  to  the  annual  confer- 
ence at  Nottingham,  with  a  view  to  its  being  referred  to  the  con- 
stituent organizations  for  discussion  and  eventual  submission,  to 
the  next  party  conference. 

Labor  and  the  New  Social  Order — A  Draft  Report  on 
Reconstruction 

it  behooves  the  Labor  Party,  in  formulating  its  own  program 
for  reconstruction  after  the  war  and  in  criticizing  the  various 
preparations  and  plans  that  are  being  made  by  the  present  Govern- 
ment, to  look  at  the  problem  as  a  whole.  We  have  to  make  clear 
what  it  is  that  we  wish  to  construct.  It  is  important  to  emphasize 
the  fact  that,  whatever  may  be  the  case  with  regard  to  other 
political  parties,  our  detailed  practical  proposals  proceed  from 
definitely  held  principles. 

The  End  of  a  Civilization.  We  need  to  beware  of  patchwork. 
The  view  of  the  Labor  Party  is  that  what  has  to  be  reconstructed 
after  the  war  is  not  this  or  that  Government  department,  or  this 
or  that  piece  of  social  machinery;  but,  so  far  as  Britain  is  con- 
cerned, society  itself.  The  individual  worker,  or  for  that  matter 
the  individual  statesman,  immersed  in  daily  routine — like  the  in- 
dividual soldier  in  a  battle — easily  fails  to  understand  the  magni- 
tude and  far-reaching  importance  of  what  is  taking  place  around 
him.  How  does  it  fit  together  as  a  whole?  How  does  it  look 
from  a  distance?  Count  Okuma,  one  of  the  oldest,  most  ex- 
perienced, and  ablest  of  the  statesmen  of  Japan,  watching  the 
present  conflict  from  the  other  side  of  the  globe,  declares  it  to 
be  nothing  less  than  the  death  of  European  civilization.  Just  as 
in  the  past  the  civilization  of  Babylon,  Egypt,  Greece,  Carthage, 
and  the  great  Roman  empire  have  been  successively  destroyed,  so, 
in  the  judgment  of  this  detached  observer,  the  civilization  of  all 
Europe  is  even  now  receiving  its  death  blow.  We  of  the  Labor 
Party  can  so  far  agree  in  this  estimate  as  to  recognize,  in  the 
present  world  catastrophe,  if  not  the  death,  in  Europe,  of  civiliza- 
tion itself,  at  any  rate  the  culmination  and  collapse  of  a  distinctive 
industrial  civilization,  which  the  workers  will  not  seek  to  recon- 

'^  Monthly  Labor  Review,  Washington,  April,  1918,  and  New  Repub- 
lic Supplement,  Feb.  16,  1918. 


1 66  LABOR  AND  RECONSTRUCTION  IN  EUROPE 

struct.  At  such  times  of  crisis  it  is  easier  to  slip  into  ruin  than 
to  progress  into  higher  forms  of  organization.  That  is  the  prob- 
lem as  it  presents  itself  to  the  Labor  Party  to-day. 

What  this  war  is  consuming  is  not  merely  the  security,  the 
homes,  the  livelihood,  and  the  lives  of  millions  of  innocent  fami- 
lies, and  an  enormous  proportion  of  all  the  accumulated  wealth  of 
the  world,  but  also  the  very  basis  of  the  peculiar  social  order  in 
which  it  has  arisen.  The  individualist  system  of  capitalist  produc- 
tion, based  on  the  private  ownership  and  competitive  administra- 
tion of  land  and  capital,  with  its  reckless  "profiteering"  and  wage 
slavery;  with  its  glorification  of  the  unhampered  struggle  for  the 
means  of  life  and  its  hypocritical  pretense  of  the  "survival  of  the 
fittest" ;  with  the  monstrous  inequality  of  circumstances  which  it 
produces  and  the  degradation  and  brutalization,  both  moral  and 
spiritual,  resulting  therefrom,  may,  we  hope,  indeed  have  received 
a  death  blow.  With  it  must  go  the  political  system  and  ideas  in 
which  it  naturally  found  expression.  We  of  the  Labor  Party, 
whether  in  opposition  or  in  due  time  called  upon  to  form  an  admin- 
istration, will  certainly  lend  no  hand  to  its  revival.  On  the  contrary, 
we  shall  do  our  utmost  to  see  that  it  is  buried  with  the  millions 
whom  it  has  done  to  death.  If  we  in  Britain  are  to  escape  from 
the  decay  of  civilization  itself,  which  the  Japanese  statesman  fore- 
sees, we  must  insure  that  what  is  presently  to  be  built  up  is  a 
new  social  order,  based  not  on  fighting,  but  on  fraternity — not  on 
the  competitive  struggle  for  the  means  of  bare  life,  but  on  a 
deliberately  planned  cooperation  in  production  and  distribution  for 
the  benefit  of  all  who  participate  by  hand  or  by  brain — not  on 
the  utmost  possible  inequality  of  riches,  but  on  a  systematic  ap- 
proach toward  a  healthy  equality  of  material  circumstances  for 
every  person  born  into  the  world — not  on  an  enforced  dominion 
over  subject  nations,  subject  races,  subject  colonies,  subject 
classes,  or  a  subject  sex,  but,  in  industry  as  well  as  in  Govern- 
ment, on  that  equal  freedom,  that  general  consciousness  of  con- 
sent, and  that  widest  possible  participation  in  power,  both  eco- 
nomic and  political,  which  is  characteristic  of  democracy.  We 
do  not,  of  course,  pretend  that  it  is  possible,  even  after  the 
drastic  clearing  away  that  is  now  going  on,  to  build  society  anew 
in  a  year  or  two  of  feverish  "reconstruction."  What  the  Labor 
Party  intends  to  satisfy  itself  about  is  that  each  brick  that  it 
helps  to  lay  shall  go  to  erect  the  structure  that  it  intends,  and 
no  other. 

The  Pillars  of  the  House.  We  need  not  here  recapitulate,  one 
by  one,  the  different  items  in  the  Labor  Party's  program,  which 
successive  party  conferences  have  adopted.    These  proposals,  some 


THE  LABOR  PROBLEM  IN  ENGLAND  167 

of  them  in  various  publications  worked  out  in  practical  detail,  are 
often  carelessly  derided  as  impracticable,  even  by  the  politicians 
w^ho  steal  them  piecemeal  from  us !  The  members  of  the  Labor 
Party,  themselves  actually  working  by  hand  or  by  brain,  in  close 
contact  with  the  facts,  have  perhaps  at  all  times  a  more  accurate 
appreciation  of  what  is  practicable,  in  industry  as  in  politics,  than 
those  who  depend  solely  on  academic  instruction  or  are  biased  by 
great  possessions.  But  to-day  no  man  dares  to  say  that  anything 
is  impracticable.  The  war,  which  has  scared  the  old  political 
parties  right  out  of  their  dogmas,  has  taught  every  statesman  and 
every  Government  ofEcial,  to  his  enduring  surprise,  how  very 
much  more  can  be  done  along  the  lines  that  we  have  laid  down 
than  he  had  ever  before  thought  possible.  What  we  now  promul- 
gate as  our  policy,  whether  for  opposition  or  for  office,  is  not 
merely  this  or  that  specific  reform,  but  a  deliberately  thought  out, 
systematic,  and  comprehensive  plan  for  that  immediate  social  re- 
building which  any  ministry,  whether  or  not  it  desires  to  grapple 
with  the  problem,  will  be  driven  to  undertake.  The  four  pillars 
of  the  house  that  we  propose  to  erect,  resting  upon  the  common 
foundation  of  the  democratic  control  of  society  in  all  its  activities, 
may  be  termed,  respectively: 

(a)  The  universal  enforcement  of  the  national  minimum; 

(b)  The  democratic  control  of  industry; 

(c)  The  revolution  in  national  finance;  and 

(d)  The  surplus  wealth  for  the  common  good. 

The  various  detailed  proposals  of  the  Labor  Party,  herein 
briefly  summarized,  rest  on  these  four  pillars,  and  can  best  be 
appreciated  in  connection  with  them. 

(a)  The  Universal  Enforcement  of  a  National  Minimum.  The 
first  principle  of  the  Labor  Party — in  significant  contrast  with  those 
of  the  capitalist  system,  whether  expressed  by  the  Liberal  or  by  the 
Conservative  Party — is  the  securing  to  every  member  of  the  com- 
munity, in  good  times  and  bad  alike  (and  not  only  to  the  strong 
and  able,  the  well  born  or  the  fortunate),  of  all  the  requisites  of 
healthy  life  and  worthy  citizenship.  This  is  in  no  sense  a  "class" 
proposal.  Such  an  amount  of  social  protection  of  the  individual, 
however  poor  and  lowly,  from  birth  to  death,  is,  as  the  economist 
now  knows,  as  indispensable  to  fruitful  cooperation  as  it  is  to  suc- 
cessful combination ;  and  it  affords  the  only  complete  safeguard 
against  that  insidious  degradation  of  the  standard  of  life  which  is 
the  worst  economic  and  social  calamity  to  which  any  community 
can  be  subjected.  We  are  members  one  of  another.  No  man 
liveth  to  himself  alone.  If  any,  even  the  humblest,  is  made  to 
suffer,  the  whole  community  and  every  one  of  us,  whether  or  not 


1 68    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

we  recognize  the  fact,  is  thereby  injured.  Generation  after  gen- 
eration this  has  been  the  corner-stone  of  the  faith  of  labor.  It 
will  be  the  guiding  principle  of  any  labor  government. 

The  Legislative  Regulation  of  Employment.  Thus  it  is  that 
the  Labor  Party  to-day  stands  for  the  universal  application  of  the 
policy  of  the  national  minimum,  to  which  (as  embodied  in  the  suc- 
cessive elaborations  of  the  factory,  mines,  railways,  shops,  mer- 
chant shipping,  and  truck  acts,  the  public  health,  housing,  and 
education  acts,  and  the  minimum-wage  act — all  of  them  aiming 
at  the  enforcement  of  at  least  the  prescribed  minimum  of  leisure, 
health,  education,  and  subsistence)  the  spokesmen  of  labor  have 
already  gained  the  support  of  the  enlightened  statesmen  and  econ- 
omists of  the  world.  All  these  laws  purporting  to  protect  against 
extreme  degradation  of  the  standard  of  life  need  considerable 
improvement  and  extension,  whilst  their  administration  leaves 
much  to  be  desired.  For  instance,  the  workmen's  compensation 
act  fails,  shamefully,  not  merely  to  secure  proper  provision  for 
all  the  victims  of  accident  and  industrial  disease,  but,  what  is 
much  more  important,  does  not  succeed  in  preventing  their  con- 
tinual increase.  The  amendment  and  consolidation  of  the  fac- 
tories and  workshops  acts,  with  their  extension  to  all  employed 
persons,  is  long  overdue,  and  it  will  be  the  policy  of  labor  greatly 
to  strengthen  the  staff  of  inspectors,  especially  by  the  addition  of 
more  men  and  women  of  actual  experience  of  the  workshop  and 
the  mine.  The  coal  mines  (minimum  wage)  act  must  certainly 
be  maintained  in  force  and  suitably  amended,  so  as  both  to  insure 
greater  uniformity  of  conditions  among  the  several  districts  and 
to  make  the  district  minimum  in  all  cases  an  effective  reality. 
The  same  policy  will,  in  the  interests  of  the  agricultural  laborers, 
dictate  the  perpetuation  of  the  legal  wage  clauses  of  the  new  corn 
law  just  passed  for  a  term  of  five  years,  and  the  prompt  amend- 
ment of  any  defects  that  may  be  revealed  in  their  working.  And, 
in  view  of  the  fact  that  many  millions  of  wage-earners,  notably 
women  and  the  less  skilled  workmen  in  various  occupations,  are 
unable  by  combination  to  obtain  wages  adequate  for  decent  main- 
tenance in  health,  the  Labor  Party  intends  to  see  to  it  that  the 
trade  boards  act  is  suitably  amended  and  made  to  apply  to  all 
industrial  employments  in  which  any  considerable  number  of  those 
employed  obtain  less  than  30  shillings  per  week.  This  minimum 
of  not  less  than  30  shillings  per  week  (which  will  need  revision 
according  to  the  level  of  prices)  ought  to  be  the  very  lowest 
statutory  base  line  for  the  least  skilled  adult  workers,  men  or 
women,  in  any  occupation,  in  all  parts  of  the  United  Kingdom. 

The  Organization  of  Demobilisation.    But  the  coming  industrial 


THE  LABOR  PROBLEM  IN  ENGLAND  169 

dislocation,  which  will  inevitably  follow  the  discharge  from  war 
service  of  half  of  all  the  working  population,  imposes  new  obliga- 
tions upon  the  community.  The  demobilization  and  discharge  of 
the  8,000,000  wage-earners  now  being  paid  from  the  public  funds, 
either  for  service  with  the  colors  or  in  munition  work  and  other 
war  trades,  will  bring  to  the  whole  wage-earning  class  grave  peril 
of  unemployment,  reduction  of  wages,  and  a  lasting  degradation 
of  the  standard  of  life,  which  can  be  prevented  only  by  deliberate 
national  organization.  The  Labor  Party  has  repeatedly  called 
upon  the  present  Government  to  formulate  its  plan,  and  to  make 
in  advance  all  arrangements  necessary  for  coping  with  so  un- 
paralleled a  dislocation.  The  policy  to  which  the  Labor  Party 
commits  itself  is  unhesitating  and  uncompromising.  It  is  plain 
that  regard  should  be  had,  in  stopping  Government  orders,  re- 
ducing the  staff  of  the  national  factories,  and  demobilizing  the 
army,  to  the  actual  state  of  employment  in  particular  industries 
and  in  different  districts,  so  as  both  to  release  first  the  kinds  of 
labor  most  urgently  required  for  the  revival  of  peace  production 
and  to  prevent  any  congestion  of  the  market.  It  is  no  less  impera- 
tive that  suitable  provision  against  being  turned  suddenly  adrift 
without  resources  should  be  made,  not  only  for  the  soldiers,  but 
also  for  the  3,000,000  operatives  in  munition  work  and  other  war 
trades,  who  will  be  discharged  long  before  most  of  the  army  can 
be  disbanded.  On  this  important  point,  which  is  the  most  urgent 
of  all,  the  present  Government  has,  we  believe,  down  to  the  pres- 
ent hour,  formulated  no  plan  and  come  to  no  decision,  and  neither 
the  Liberal  nor  the  Conservative  Party  has  apparently  deemed 
the  matter  worthy  of  agitation.  Any  Government  which  should 
allow  the  discharged  soldier  or  munition  worker  to  fall  into  the 
clutches  of  charity  or  the  poor  law  would  have  to  be  instantly 
driven  from  office  by  an  outburst  of  popular  indignation.  What 
every  one  of  them  who  is  not  wholly  disabled  will  look  for  is 
a  situation  in  accordance  with   his   capacity. 

Securing  Employment  for  All.  The  Labor  Party  insists — as  no 
other  political  party  has  thought  fit  to  do — that  the  obligation  to 
find  suitable  employment  in  productive  work  for  all  these  men  and 
women  rests  upon  the  Government  for  the  time  being.  The  work 
of  resettling  the  disbanded  soldiers  and  discharged  munition  work- 
ers into  new  situations  is  a  national  obligation,  and  the  Labor 
Party  emphatically  protests  against  it  being  regarded  as  a  matter 
for  private  charity.  It  strongly  objects  to  this  public  duty  being 
handed  over  either  to  committees  of  philanthropists  or  benevolent 
societies,  or  to  any  of  the  military  or  recruiting  authorities.  The 
policy  of  the  Labor  Party  in  this  matter  is  to  make  the  utmost  use 


170    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

of  the  trade  unions,  and,  equally  for  the  brainworkers,  of  the 
various  professional  associations.  In  view  of  the  fact  that,  in 
any  trade,  the  best  organization  for  placing  men  in  situations  is  a 
national  trade  union  having  local  branches  throughout  the  king- 
dom, every  soldier  should  be  allowed,  if  he  chooses,  to  have  a 
duplicate  of  his  industrial  discharge  notice  sent,  one  month  before 
the  date  fixed  for  his  discharge,  to  the  secretary  of  the  trade 
union  to  which  he  belongs  or  wishes  to  belong.  Apart  from  this 
use  of  the  trade  union  (and  a  corresponding  use  of  the  profes- 
sional association)  the  Government  must,  of  course,  avail  itself 
of  some  such  public  machinery  as  that  of  the  employment  ex- 
changes ;  but  before  the  existing  exchanges  (which  will  need  to 
be  greatly  extended)  can  receive  the  cooperation  and  support  of 
the  organized  labor  movement,  without  which  their  operations 
can  never  be  fully  successful,  it  is  imperative  that  they  should  be 
drastically  reformed,  on  the  lines  laid  down  in  the  demobilization 
report  of  the  "labor  after  the  war"  joint  committee;  and,  in  par- 
ticular, that  each  exchange  should  be  placed  effectually  under  the 
supervision  and  control  of  a  joint  committee  of  employers  and 
trade  unionists  in  equal  numbers. 

The  responsibility  of  the  Government,  for  the  time  b^ing,  in 
the  grave  industrial  crisis  that  demobilization  will  produce,  goes, 
however,  far  beyond  the  8,000,000  men  and  women  whom  the 
various  departments  will  suddenly  discharge  from  their  own  serv- 
ice. The  effect  of  this  peremptory  discharge  on  all  the  other 
workers  has  also  to  be  taken  into  account.  To  the  Labor  Party 
it  will  seem  the  supreme  concern  of  the  Government  of  the  day 
to  see  to  it  that  there  shall  be,  as  a  result  of  the  gigantic  "general 
post"  which  it  will  itself  have  deliberately  set  going,  nowhere 
any  degradation  of  the  standard  of  life.  The  Government  has 
pledged  itself  to  restore  the  trade  union  conditions  and  "pre-war 
practices"  of  the  workshop,  which  the  trade  unions  patriotically 
gave  up  at  the  direct  request  of  the  Government  itself;  and  this 
solemn  pledge  must  be  fulfilled,  of  course,  in  the  spirit  as  well  as 
in  the  letter.  The  Labor  Party,  moreover,  holds  it  to  be  the  duty 
of  the  Government  of  the  day  to  take  all  necessary  steps  to  pre- 
vent the  standard  rates  of  wages,  in  any  trade  or  occupation 
whatsoever,  from  suffering  any  reduction,  relatively  to  the  con- 
temporary cost  of  living.  Unfortunately,  the  present  Government, 
like  the  Liberal  and  Conservative  Parties,  so  far  refuses  to  speak 
on  this  important  matter  with  any  clear  voice.  We  claim  that  it 
should  be  a  cardinal  point  of  Government  policy  to  make  it  plain 
to  every  capitalist  employer  that  any  attempt  to  reduce  the  custom- 
ary rates  of  wages  when  peace  comes,  or  to  take  advantage  of  the 


THE  LABOR  PROBLEM  IN  ENGLAND  171 

dislocation  of  demobilization  to  worsen  the  conditions  of  employ- 
ment in  any  grade  whatsoever,  will  certainly  lead  to  embittered 
industrial  strife,  which  will  be  in  the  highest  degree  detrimental 
to  the  national  interests;  and  that  the  Government  of  the  day 
will  not  hesitate  to  take  all  necessary  steps  to  avert  such  a  calam- 
ity. In  the  great  impending  crisis  the  Government  of  the  day 
should  not  only,  as  the  greatest  employer  of  both  brain  workers 
and  manual  workers,  set  a  good  example  in  this  respect,  but  should 
also  actively  seek  to  influence  private  employers  by  proclaiming 
in  advance  that  it  will  not  itself  attempt  to  lower  the  standard 
rates  of  conditions  in  public  employment;  by  announcing  that  it 
will  insist  on  the  most  rigorous  observance  of  the  fair-wages 
clause  in  all  public  contracts;  and  by  explicitly  recommending 
every  local  authority  to  adopt  the  same  policy. 

But  nothing  is  more  dangerous  to  the  standard  of  life  or  so  de- 
structive of  those  minimum  conditions  of  healthy  existence  which 
must  in  the  interests  of  the  community  be  assured  to  every  worker 
than  any  widespread  or  continued  unemployment.  It  has  always 
been  a  fundamental  principle  of  the  Labor  Party  (a  point  on 
which,  significantly  enough,  it  has  not  been  followed  by  either 
of  the  other  political  parties)  that,  in  a  modern  industrial  com- 
munity, it  is  one  of  the  foremost  obligations  of  the  Government 
to  find,  for  every  willing  worker,  whether  by  hand  or  by  brain, 
productive  work  at  standard  rates. 

It  is  accordingly  the  duty  of  the  Government  to  adopt  a  policy 
of  deliberately  and  systematically  preventing  the  occurrence  of 
unemployment,  instead  of  (as  heretofore)  letting  unemployment 
occur,  and  then  seeking,  vainly  and  expensively,  to  relieve  the  un- 
employed. It  is  now  known  that  the  Government  can,  if  it  chooses, 
arrange  the  public  works  and  the  orders  of  national  departments 
and  local  authorities  in  such  a  way  as  to  maintain  the  aggregate 
demand  for  labor  in  the  whole  kingdom  (including  that  of  capital- 
ist employers)  approximately  at  a  uniform  level  from  year  to 
year;  and  it  is  therefore  a  primary  obligation  of  the  Government 
to  prevent  any  considerable  or  widespread  fluctuations  in  the  total 
numbers  employed  in  times  of  good  or  bad  trade.  But  this  is 
not  all.  In  order  to  prepare  for  the  possibility  of  there  being 
any  unemployment,  either  in  the  course  of  demobilization  or  in 
the  first  years  of  peace,  it  is  essential  that  the  Government  should 
make  all  necessary  preparations  for  putting  instantly  in  hand, 
directly  or  through  the  local  authorities,  such  urgently  needed 
public  works  as  (a)  the  rehousing  of  the  population  alike  in 
rural  districts,  mining  villages,  and  town  slums,  to  the  extent,  pos- 
sibly, of  a  million  new  cottages  and  an  outlay  of  three  hundred 


172     LABOR  AND  RECONSTRUCTION  IN  EUROPE 

millions  sterling;  (b)  the  immediate  making  good  of  the  short- 
age of  schools,  training  colleges,  technical  colleges,  etc.,  and  the 
engagement  of  the  necessary  additional  teaching,  clerical,  and 
administrative  staff's;  (c)  new  roads;  (d)  light  railways;  (e) 
the  unification  and  reorganization  of  the  railway  and  canal  sys- 
tem; (/)  afforestation;  (g)  the  reclamation  of  land;  (h)  the  de- 
velopment and  better  equipment  of  our  ports  and  harbors;  (i)  the 
opening  up  of  access  to  land  by  cooperative  small  holdings  and  in 
other  practicable  ways.  Moreover,  in  order  to  relieve  any  pressure 
of  an  overstocked  labor  market,  the  opportunity  should  be  taken,  if 
unemployment  should  threaten  to  become  widespread,  (c)  im- 
mediately to  raise  the  school-leaving  age  to  i6;  (b)  greatly  to 
increase  the  number  of  scholarships  and  bursaries  for  secondary 
and  higher  education;  and  (c)  substantially  to  shorten  the  hours 
of  labor  of  all  young  persons,  even  to  a  greater  extent  than  the 
eight  hours  per  week  contemplated  in  the  new  education  bill,  in 
order  to  enable  them  to  attend  technical  and  other  classes  in  the 
daytime.  Finally,  wherever  practicable,  the  hours  of  adult  labor 
should  be  reduced  to  not  more  than  48  per  week,  without  reduc- 
tion of  the  standard  rates  of  wages.  There  can  be  no  economic  or 
other  justification  for  keeping  any  man  or  woman  at  work  for 
long  hours,  or  at  overtime,  whilst  others  are  unemployed. 

Social  Insurance  Against  Unemployment.  In  so  far  as  the 
Government  fails  to  prevent  unemployment — whenever  it  finds 
it  impossible  to  discover  for  any  willing  worker,  man  or  women, 
a  suitable  situation  at  the  standard  rate — the  Labor  Party  holds 
that  the  Government  must,  in  the  interest  of  the  community  as  a 
whole,  provide  him  or  her  with  adequate  maintenance,  either  with 
such  arrangements  for  honorable  employment  or  with  such  useful 
training  as  may  be  found  practicable,  according  to  age,  health,  and 
previous  occupation.  In  many  ways  the  best  form  of  provision 
for  those  who  must  be  unemployed,  because  the  industrial  organ- 
ization of  the  community  so  far  breaks  down  as  to  be  temporarily 
unable  to  set  them  to  work,  is  the  out-of-work  benefit  afforded  by 
a  well  administered  trade  union.  This  is  a  special  tax  on  the 
trade  unionists  themselves  which  they  have  voluntarily  undertaken 
but  toward  which  they  have  a  right  to  claim  a  public  subvention — 
a  subvention  which  was  actually  granted  by  Parliament  (though 
only  to  the  extent  of  a  couple  of  shillings  or  so  per  week)  under 
Part  II  of  the  insurance  act.  The  arbitrary  withdrawal  by  the 
Government  in  1915  of  this  statutory  right  of  the  trade  unions 
was  one  of  the  least  excusable  of  the  war  economies;  and  the 
Labor  Party  must  insist  on  the  resumption  of  this  subvention  im- 
mediately the  war  ceases,  and  on  its  increase  to  at  least  half  the 


THE  LABOR  PROBLEM  IN  ENGLAND  173 

amount  spent  in  out-of-work  benefit.  The  extension  of  State  un- 
employment insurance  to  other  occupations  may  afford  a  con- 
venient method  of  providing  for  such  of  the  unemployed,  es- 
pecially in  the  case  of  badly  paid  women  workers  and  the  less 
skilled  men,  whom  it  is  difficult  to  organize  into  trade  unions. 
But  the  weekly  rate  of  the  State  unemployment  benefit  needs,  in 
these  days  of  high  prices,  to  be  considerably  raised ;  whilst  no  in- 
dustry ought  to  be  compulsorily  brought  within  its  scope  against 
the  declared  will  of  the  workers  concerned,  and  especially  of  their 
trade  unions.  In  one  way  or  another  remunerative  employment 
or  honorable  maintenance  must  be  found  for  every  willing  worker, 
by  hand  or  by  brain,  in  bad  times  as  well  as  in  good.  It  is 
clear  that,  in  the  twentieth  century,  there  must  be  no  question  of 
driving  the  unemployed  to  anything  so  obsolete  and  discredited 
as  either  private  charity,  with  its  haphazard  and  ill-considered 
doles,  or  the  poor  law,  with  the  futilities  and  barbarities  of  its 
"stone  yard,"  or  its  "able-bodied  test  workhouse."  Only  on  the 
basis  of  a  universal  application  of  the  policy  of  the  national  mini- 
mum, affording  complete  security  against  destitution,  in  sickness 
and  health,  in  good  times  and  bad  alike,  to  every  member  of  the 
community,  of  whatever  age  or  sex,  can  any  worthy  social  order 
be  built  up. 

(b)  The  Democratic  Control  of  Industries.  The  universal 
application  of  the  policy  of  the  national  minimum  is,  of  course, 
only  the  first  of  the  pillars  of  the  house  that  the  Labor  Party 
intends  to  see  built.  What  marks  off  this  party  most  distinctly 
from  any  of  the  other  political  parties  is  its  demand  for  the  full 
and  genuine  adoption  of  the  principle  of  democracy.  The  first 
condition  of  democracy  is  effective  personal  freedom.  This  has 
suffered  so  many  encroachments  during  the  war  that  it  is  neces- 
sary to  state  with  clearness  that  the  complete  removal  of  all  the 
war-time  restrictions  on  freedom  of  speech,  freedom  of  publica- 
tion, freedom  of  the  press,  freedom  of  travel,  and  freedom  of 
choice  of  place  of  residence  and  kind  of  employment  must  take 
place  the  day  after  peace  is  declared.  The  Labor  Party  declares 
emphatically  against  any  continuance  of  the  military  service  acts 
a  moment  longer  than  the  imperative  requirements  of  the  war 
excuse.  But  individual  freedom  is  of  little  use  without  complete 
political  rights.  The  Labor  Party  sees  its  repeated  demands 
largely  conceded  in  the  present  representation  of  the  people  act, 
but  not  yet  wholly  satisfied.  The  party  stands,  as  heretofore,  for 
complete  adult  suffrage,  with  not  more  than  a  three  months'  resi- 
dential qualification,  for  effective  provision  for  absent  electors  to 
vote,  for  absolutely  equal  rights  for  both  sexes,  for  the  same  free- 


174    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

dom  to  exercise  civic  rights  for  the  "common  soldier"  as  for  the 
officer,  for  shorter  Parliaments,  for  the  complete  abolition  of  the 
House  of  Lords,  and  for  a  most  strenuous  opposition  to  any  new 
second  chamber,  whether  elected  or  not,  having  in  it  any  element 
of  heredity  or  privilege,  or  of  the  control  of  the  House  of  Com- 
mons by  any  party  or  class.  But  unlike  the  Conservative  and 
Liberal  Parties,  the  Labor  Party  insists  on  democracy  in  in- 
dustry as  well  as  in  government.  It  demands  the  progressive 
elimination  from  the  control  of  industry  of  the  private  capitalist, 
individual  or  joint-stock;  and  the  setting  free  of  all  who  work, 
whether  by  hand  or  by  brain,  for  the  service  of  the  community, 
and  of  the  community  only.  And  the  Labor  Party  refuses  abso- 
lutely to  believe  that  the  British  people  will  permanently  tolerate 
any  reconstruction  or  perpetuation  of  the  disorganization,  waste, 
and  inefficiency  involved  in  the  abandonment  of  British  industry 
to  a  jostling  crowd  of  separate  private  employers,  with  their 
minds  bent  not  on  the  service  of  the  community  but — by  the  very 
law  of  their  being — only  on  the  utmost  possible  profiteering. 
What  the  Nation  needs  is  undoubtedly  a  great  bound  onward  in  its 
aggregate  productivity.  But  this  can  not  be  secured  merely  by 
pressing  the  manual  workers  to  more  strenuous  toil,  or  even  by 
encouraging  the  "captains  of  industry"  to  a  less  wasteful  organ- 
ization of  their  several  enterprises  on  a  profit-making  basis.  What 
the  Labor  Party  looks  to  is  a  genuinely  scientific  reorganization 
of  the  Nation's  industry,  no  longer  deflected  by  individual  profit- 
eering, on  the  basis  of  the  common  ownership  of  the  means  of 
production;  the  equitable  sharing  of  the  proceeds  among  all  who 
participate  in  any  capacity  and  only  among  these,  and  the  adop- 
tion, in  particular  services  and  occupations,  of  those  systems  and 
methods  of  administration  and  control  that  may  be  found  in  prac- 
tice best  to  promote  not  profiteering,  but  the  public  interest. 

Immediate  Nationalization.  The  Labor  Party  stands  not  merely 
for  the  principle  of  the  common  ownership  of  the  Nation's  land, 
to  be  applied  as  suitable  opportunities  occur,  but  also,  specifically, 
for  the  immediate  nationalization  of  railways,  mines,  and  the 
production  of  electrical  power.  We  hold  that  the  very  foundation 
of  any  successful  reorganization  of  British  industry  must  neces- 
sarily be  found  in  the  provision  of  the  utmost  facilities  for  trans- 
port and  communication,  the  production  of  power  at  the  cheap- 
est possible  rate,  and  the  most  economical  supply  of  both  electrical 
energy  and  coal  to  every  corner  of  the  Kingdom.  Hence  the 
Labor  Party  stands  unhesitatingly  for  the  national  ownership  and 
administration  of  the  railways  and  canals,  and  their  union,  along 
with  harbors  and  roads  and  the  posts  and  telegraphs — not  to  say 


THE  LABOR  PROBLEM  IN  ENGLAND  175 

also  the  great  lines  of  steamers  which  could  at  once  be  owned, 
if  not  immediately  directly  managed  in  detail,  by  the  Government 
— in  a  united  national  service  of  communication  and  transport,  to 
be  worked,  unhampered  by  capitalist,  private,  or  purely  local  in- 
terests (and  with  a  steadily  increasing  participation  of  the  organ- 
ized workers  in  the  management,  both  central  and  local),  ex- 
clusively for  the  common  good.  If  any  government  should  be  so 
misguided  as  to  propose,  when  peace  comes,  to  hand  the  railways 
back  to  the  shareholders,  or  should  show  itself  so  spendthrift  of 
the  Nation's  property  as  to  give  these  shareholders  any  enlarged 
franchise  by  presenting  them  with  the  economies  of  unification 
or  the  profits  of  increased  railway  rates,  or  so  extravagant  as  to 
bestow  public  funds  on  the  reequipment  of  privately  owned  lines — 
all  of  which  things  are  now  being  privately  intrigued  for  by  the 
railway  interests — the  Labor  Party  will  offer  any  such  project  the 
most  strenuous  opposition.  The  railways  and  canals,  like  the 
roads,  must  henceforth  belong  to  the  public,  and  to  the  public 
alone. 

In  the  production  of  electricity,  for  cheap  power,  light,  and 
heating,  this  country  has  so  far  failed,  because  of  hampering 
private  interests,  to  take  advantage  of  science.  Even  in  the  larg- 
est cities  we  still  "peddle"  our  electricity  on  a  contemptibly  small 
scale.  What  is  called  for,  immediately  after  the  war,  is  the 
erection  of  a  score  of  gigantic  "super-power  stations,"  which  could 
generate,  at  incredibly  cheap  rates,  enough  electricity  for  the  use 
of  every  industrial  establishment  and  every  private  household  in 
Great  Britain,  the  present  municipal  and  joint-stock  electrical 
plants  being  universally  linked  up  and  used  for  local  distribution. 
This  is  inevitably  the  future  of  electricity.  It  is  plain  that  so 
great  and  so  powerful  an  enterprise,  affecting  every  industrial 
enterprise  and  eventually  every  household,  must  not  be  allowed  to 
pass  into  the  hands  of  private  capitalists.  They  are  already  press- 
ing the  Government  for  the  concession,  and  neither  the  Liberal 
nor  the  Conservative  Party  has  yet  made  up  its  mind  to  a  refusal 
of  such  a  new  endowment  of  profiteering  in  what  will  presently 
be  the  life  blood  of  modern  productive  industry.  The  Labor 
Party  demands  that  the  production  of  electricity  on  the  necessary 
gigantic  scale  shall  be  made  from  the  start  (with  suitable  ar- 
rangements for  municipal  cooperation  in  local  distribution)  a 
national  enterprise,  to  be  worked  exclusively  with  the  object  of 
supplying  the  whole  Kingdom  with  the  cheapest  possible  power, 
light,  and  heat. 

But  with  railways  and  the  generation  of  electricity  in  the  hands 
of  the  public  it  would  be  criminal  folly  to  leave  to  the  present 


176  LABOR  AND  RECONSTRUCTION  IN  EUROPE 

1.500  colliery  companies  the  power  of  "holding  up"  the  coal 
supply.  These  are  now  all  working  under  public  control,  on 
terms  that  virtually  afford  to  their  shareholders  a  statutory  guar- 
anty of  their  swollen  incomes.  The  Labor  Party  demands  the 
immediate  nationalization  of  mines,  the  extraction  of  coal  and 
iron  being  worked  as  a  public  service  (with  a  steadily  increas- 
ing participation  in  the  management,  both  central  and  local,  of 
the  various  grades  of  persons  employed),  and  the  whole  business 
of  the  retail  distribution  of  household  coal  being  undertaken  as  a 
local  public  service  by  the  elected  municipal  or  county  councils. 
And  there  is  no  reason  why  coal  should  fluctuate  in  price  any 
more  than  railway  fares,  or  why  the  consumer  should  be  made 
to  pay  more  in  winter  than  in  summ.er,  or  in  one  town  than  an- 
other. What  the  Labor  Party  would  aim  at  is,  for  household  coal 
of  standard  quality,  a  fixed  and  uniform  price  for  the  whole 
Kingdom,  payable  by  rich  and  poor  alike,  as  unalterable  as  the 
penny  postage  stamp. 

But  the  sphere  of  immediate  nationalization  is  not  restricted  to 
these  great  industries.  We  shall  never  succeed  in  putting  the 
gigantic  system  of  health  insurance  on  a  proper  footing,  or  secure 
a  clear  field  for  the  beneficent  work  of  the  friendly  societies,  or 
gain  a  free  hand  for  the  necessary  development  of  the  urgently 
called  for  ministry  of  health  and  the  local  public-health  service, 
until  the  nation  expropriates  the  profit-making  industrial  insur- 
ance companies  which  now  so  tyrannously  exploit  the  people  with 
their  wasteful  house-to-house  industrial  life  insurance.  Only  by 
such  an  expropriation  of  life-assurance  companies  can  we  secure 
the  universal  provision,  free  from  the  burdensome  toll  of  weekly 
pence,  of  the  indispensable  funeral  benefit.  Nor  is  it  in  any  sense 
a  "class"  measure.  Only  by  the  assumption  by  a  state  department 
of  the  whole  business  of  life  assurance  can  the  millions  of  policy- 
holders of  all  classes  be  completely  protected  against  the  possibly 
calamitous  results  of  the  depreciation  of  securities  and  suspension 
of  bonuses  which  the  war  is  causing.  Only  by  this  means  can 
the  great  staff  of  insurance  agents  find  their  proper  place  as  civil 
servants,  with  equitable  conditions  of  employment,  compensation 
for  any  disturbance  and  security  of  tenure,  in  a  nationally 
organized  public  service  for  the  discharge  of  the  steadily  in- 
creasing functions  of  the  Government  in  vital  statistics  and  social 
insurance. 

In  quite  another  sphere  the  Labor  Party  sees  the  key  to  temper- 
ance reform  in  taking  the  entire  manufacture  and  retailing  of 
alcoholic  drink  out  of  the  hands  of  those  who  find  profit  in  pro- 
moting the   utmost  possible   consumption.     This   is   essentially  a 


THE  LABOR  PROBLEM  IN  ENGLAND  177 

case  in  which  the  people,  as  a  whole,  must  assert  its  right  to  full 
and  unfettered  power  for  dealing  with  the  licensing  question  in 
accordance  with  local  opinion.  For  this  purpose,  localities  should 
have  conferred  upon  them  facilities  (o)  to  prohibit  the  sale  of 
liquor  within  their  boundaries,  (b)  to  reduce  the  number  of 
licenses  and  regulate  the  conditions  under  which  they  may  be  held, 
and  (c)  if  a  locality  decides  that  licenses  are  to  be  granted,  to 
determine  whether  such  licenses  shall  be  under  private  or  any 
form  of  public  control. 

Municipalisafion.  Other  main  industries,  especially  those  now 
becoming  monopolized,  should  be  nationalized  as  opportunity 
offers.  Moreover,  the  Labor  Party  holds  that  the  municipalities 
should  not  confine  their  activities  to  the  necessarily  costly  services 
of  education,  sanitation,  and  police;  nor  yet  rest  content  with  ac- 
quiring control  of  the  local  water,  gas,  electricity,  and  tramways; 
but  that  every  facility  should  be  afforded  to  them  to  acquire 
(easily,  quickly,  and  cheaply)  all  the  land  they  require  and  to  ex- 
tend their  enterprises  in  housing  and  town  planning,  parks,  and 
public  libraries,  the  provision  of  music  and  the  organization  of 
recreation ;  and  also  to  undertake,  besides  the  retailing  of  coal, 
other  services  of  common  utility,  particularly  the  local  supply  of 
milk,  wherever  this  is  not  already  fully  and  satisfactorily  organ- 
ized by  a  cooperative  society. 

Control  of  Capitalist  Industry.  Meanwhile,  however,  we  ought 
not  to  throw  away  the  valuable  experience  now  gained  by  the  Gov- 
ernment in  its  assumption  of  the  importation  of  wheat,  wool, 
metals,  and  other  commodities,  and  in  its  control  of  the  shipping, 
woolen,  leather,  clothing,  boot  and  shoe,  milling,  baking,  butcher- 
ing, and  other  industries.  The  Labor  Party  holds  that,  whatever 
may  have  been  the  shortcomings  of  this  Government  importation 
and  control,  it  has  demonstrably  prevented  a  lot  of  "profiteering." 
Nor  can  it  end  immediately  on  the  declaration  of  peace.  The  peo- 
ple will  be  extremely  foolish  if  they  ever  allow  their  indispensable 
industries  to  slip  back  into  the  unfettered  control  of  private  capi- 
talists, who  are,  actually  at  the  instance  of  the  Government  itself, 
now  rapidly  combining,  trade  by  trade,  into  monopolist  trusts, 
which  may  presently  become  as  ruthless  in  their  extortion  as  the 
worst  American  examples.  Standing  as  it  does  for  the  democratic 
control  of  industry,  the  Labor  Party  would  think  twice  before  it 
sanctioned  any  abandonment  of  the  present  profitable  centraliza- 
tion of  purchase  of  raw  material;  of  the  present  carefully  organ- 
ized "rationing,"  by  joint  committees  of  the  trades  concerned,  of 
the  several  establishments  with  the  materials  they  require ;  of  the 
present  elaborate  system  of  "costing"  and  public  audit  of  manu- 


178    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

facturers'  accounts  so  as  to  stop  the  waste  heretofore  caused  by 
the  mechanical  inefficiency  of  the  more  backward  firms;  of  the 
present  salutary  publicity  of  manufacturing  processes  and  ex- 
penses thereby  insured;  and,  on  the  information  thus  obtained  (in 
order  never  again  to  revert  to  the  old-time  profiteering),  of  the 
present  rigid  fixing,  for  standardized  products,  of  maximum  prices 
at  the  factory,  at  the  warehouse  of  the  wholesale  trader,  and  in 
the  retail  shop.  This  question  of  the  retail  prices  of  household 
commodities  is  emphatically  the  most  practical  of  all  political 
issues  to  the  woman  elector.  The  male  politicians  have  too  long 
neglected  the  grievances  of  the  small  household,  which  is  the 
prey  of  every  profiteering  combination;  and  neither  the  Liberal 
nor  the  Conservative  Party  promises  in  this  respect  any  amend- 
ment. This,  too,  is  in  no  sense  a  "class"  measure.  It  is, 
so  the  Labor  Party  holds,  just  as  much  the  function  of  government 
and  just  as  necessary  a  part  of  the  democratic  regulation  of  in- 
dustry to  safeguard  the  interests  of  the  community  as  a  whole 
and  those  of  all  grades  and  sections  of  private  consumers  in  the 
matter  of  prices  as  it  is,  by  the  factory  and  trade  boards  acts, 
to  protect  the  rights  of  the  wage-earning  producers  in  the  matter 
of  wages,  hours  of  labor,  and  sanitation. 

(c)  A  Revolution  in  National  Finance.  In  taxation,  also,  the 
interests  of  the  professional  and  housekeeping  classes  are  at 
one  with  those  of  the  manual  workers.  Too  long  has  our 
national  finance  been  regulated,  contrary  to  the  teaching  of  politi- 
cal economy,  according  to  the  wishes  of  the  possessing  classes  and 
the  profits  of  the  financiers.  The  colossal  expenditure  involved  in 
the  present  war  (of  which,  against  the  protest  of  the  Labor  Party, 
only  a  quarter  has  been  raised  by  taxation,  whilst  three-quarters 
have  been  borrowed  at  onerous  rates  of  interest,  to  be  a  burden 
on  the  Nation's  future)  brings  things  to  a  crisis.  When  peace 
comes,  capital  will  be  needed  for  all  sorts  of  social  enterprises, 
and  the  resources  of  Government  will  necessarily  have  to  be  vastly 
greater  than  they  were  before  the  war.  Meanwhile  innumerable 
new  private  fortunes  are  being  heaped  up  by  those  who  have 
taken  advantage  of  the  Nation's  needs;  and  the  one-tenth  of  the 
population  which  owns  nine-tenths  of  the  riches  of  the  United 
Kingdom,  far  from  being  made  poorer,  will  find  itself,  in  the 
aggregate,  as  a  result  of  the  war,  drawing  in  rent  and  interest 
and  dividends  a  larger  nominal  income  than  ever  before.  Such  a 
position  demands  a  revolution  in  national  finance.  How  are  we 
to  discharge  a  public  debt  that  may  well  reach  the  almost  in- 
credible figure  of  7,000  million  pounds  sterling  and  at  the  same 
time  raise  an  annual  revenue  which,  for  local  as  well  as  central 


THE  LABOR  PROBLEM  IN  ENGLAND  179 

government,  must  probably  reach  1,000  millions  a  year?  It  is 
oyer  this  problem  of  taxation  that  the  various  political  parties 
will  be  found  to  be  most  sharply  divided. 

The  Labor  Party  stands  for  such  a  system  of  taxation  as  w^ill 
yield  all  the  necessary  revenue  to  the  Government  without  en- 
croaching on  the  prescribed  national  minimum  standard  of  life  of 
any  family  whatsoever;  without  hampering  production  or  dis- 
couraging any  useful  personal  effort,  and  with  the  nearest  pos- 
sible approximation  to  equality  of  sacrifice.  We  definitely  re- 
pudiate all  proposals  for  a  protective  tariff,  in  whatever  specious 
guise  they  may  be  cloaked,  as  a  device  for  burdening  the  con- 
sumer with  unnecessarily  enhanced  prices,  to  the  profit  of  the 
capitalist  employer  or  landed  proprietor,  who  avowedly  expects  his 
profit  or  rent  to  be  increased  thereby.  We  shall  strenuously  op- 
pose any  taxation,  of  whatever  kind,  which  would  increase  the 
price  of  food  or  of  any  other  necessary  of  life.  We  hold  that 
indirect  taxation  on  commodities,  whether  by  customs  or  excise, 
should  be  strictly  limited  to  luxuries  and  concentrated  principally 
on  those  of  which  it  is  socially  desirable  that  the  consumption 
should  be  actually  discouraged.  We  are  at  one  with  the  manu- 
facturer, the  farmer,  and  the  trader  in  objecting  to  taxes  inter- 
fering with  production  or  commerce,  or  hampering  transport  and 
communications.  In  all  these  matters — once  more  in  contrast 
with  the  other  political  parties,  and  by  no  means  in  the  interests 
of  the  wage  earners  alone — the  Labor  Party  demands  that  the 
very  definite  teachings  of  economic  science  should  no  longer  be 
disregarded. 

For  the  raising  of  the  greater  part  of  the  revenue  now  required 
the  Labor  Party  looks  to  the  direct  taxation  of  the  incomes  above 
the  necessary  cost  of  family  maintenance ;  and  for  the  requisite 
effort  to  pay  off  the  national  debt,  to  the  direct  taxation  of 
private  fortunes,  both  during  life  and  at  death.  The  income  tax  and 
supertax  ought  at  once  to  be  thoroughly  reformed  in  assessment 
and  collection,  in  abatements  and  allowances,  and  in  graduation 
and  differentiation,  so  as  to  levy  the  required  total  sum  in  such  a 
way  as  to  make  the  real  sacrifice  of  all  the  taxpayers  as  nearly  as 
possible  equal.  This  would  involve  assessment  by  families  instead 
of  by  individual  persons,  so  that  the  burden  is  alleviated  in  pro- 
portion to  the  number  of  persons  to  be  maintained.  It  would 
involve  the  raising  of  the  present  unduly  low  minimum  income 
assessable  to  the  tax  and  the  lightening  of  the  present  unfair 
burden  on  the  great  mass  of  professional  and  small  trading  classes 
by  a  new  scale  of  graduation,  rising  from  a  penny  in  the  pound 
on  the  smallest  assessable  income  up  to  16  or  even  19  shillings 


i8o    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

in  the  pound  on  the  highest  income  of  the  millionaires.  It  would 
involve  bringing  into  assessment  the  numerous  windfalls  of  profit 
that  now  escape,  and  a  further  differentiation  between  essentially 
different  kinds  of  income.  The  excess-profits  tax  might  well  be 
retained  in  an  appropriate  form ;  whilst  so  long  as  mining  royal- 
ties exist  the  mineral-rights  duty  ought  to  be  increased.  The 
steadily  rising  unearned  increment  of  urban  and  mineral  land 
ought,  by  an  appropriate  direct  taxation  of  land  values,  to  be 
wholly  brought  into  the  public  exchequer.  At  the  same  time,  for 
the  service  and  redemption  of  the  national  debt,  the  death  duties 
ought  to  be  regraduated,  much  more  strictly  collected,  and  greatly 
increased.  In  this  matter  we  need,  in  fact,  completely  to  reverse 
our  point  of  view  and  to  rearrange  the  whole  taxation  of  inherit- 
ance from  the  standpoint  of  asking  what  is  the  maximum  amount 
that  any  rich  man  should  be  permitted  at  death  to  divert  by  his 
will  from  the  national  exchequer,  which  should  normally  be  the 
heir  to  all  private  riches  in  excess  of  a  quite  moderate  amount 
by  way  of  family  provision.  But  all  this  will  not  suffice.  It  will 
be  imperative  at  the  earliest  possible  moment  to  free  the  Nation 
from  at  any  rate  the  greater  part  of  its  new  load  of  interest-bear- 
ing debt  for  loans  which  ought  to  have  been  levied  as  taxation; 
and  the  Labor  Party  stands  for  a  special  capital  levy  to  pay  off,  if 
not  the  whole,  a  very  substantial  part  of  the  entire  national  debt — 
a  capital  levy  chargeable  like  the  death  duties  on  all  property,  but 
(in  order  to  secure  approximate  equality  of  sacrifice)  with  ex- 
emption of  the  smallest  savings,  and  for  the  rest  at  rates  very 
steeply  graduated,  so  as  to  take  only  a  small  contribution  from  the 
little  people  and  a  very  much  larger  percentage  from  the  million- 
aires. 

Over  this  issue  of  how  the  financial  burden  of  the  war  is  to  be 
borne  and  how  the  necessary  revenue  is  to  be  raised,  the  greatest 
political  battles  will  be  fought.  In  this  matter  the  Labor  Party 
claims  the  support  of  four-fifths  of  the  whole  Nation,  for  the  inter- 
ests of  the  clerk,  the  teacher,  the  doctor,  the  minister  of  religion, 
the  average  retail  shopkeeper  and  trader,  and  all  the  mass  of  those 
living  on  small  incomes  are  identical  with  those  of  the  artisan. 
The  landlords,  the  financial  magnates,  the  possessors  of  great  for- 
tunes will  not,  as  a  class,  willingly  forego  the  relative  immunity 
that  they  have  hitherto  enjoyed.  The  present  unfair  subjection 
of  the  cooperative  society  to  an  excess-profits  tax  on  the  "profits" 
which  it  has  never  made — specially  dangerous  as  "the  thin  end  of 
the  wedge"  of  penal  taxation  of  this  laudable  form  of  democratic 
enterprise — will  not  be  abandoned  without  a  struggle.  Every 
possible  effort  will  be  made  to  juggle  with  the  taxes  so  as  to  place 


THE  LABOR  PROBLEM  IN  ENGLAND  i8i 

upon  the  shoulders  of  the  mass  of  laboring  folk  and  upon  the 
struggling  households  of  the  professional  men  and  small  traders 
(as  was  done  after  every  previous  war) — whether  by  customs  or 
excise  duties,  by  industrial  monopolies,  by  unnecessarily  high  rates 
of  postage  and  railway  fares,  or  by  a  thousand  and  one  other  in- 
genious devices — an  unfair  share  of  the  national  burden.  Against 
these  efforts  the  Labor  Party  will  take  the  firmest  stand. 

(d)  The  Surplus  for  the  Common  Good.  In  the  disposal  of  the 
surplus  above  the  standard  of  life  society  has  hitherto  gone  as  far 
wrong  as  in  its  neglect  to  secure  the  necessary  basis  of  any 
genuine  industrial  efficiency  or  decent  social  order.  We  have  al- 
lowed the  riches  of  our  mines,  the  rental  value  of  the  lands  su- 
perior to  the  margin  of  cultivation,  the  extra  profits  of  the  fortu- 
nate capitalists,  even  the  material  outcome  of  scientific  discoveries 
— which  ought  by  now  to  have  made  this  Britain  of  ours  immune 
from  class  poverty  or  from  any  widespread  destitution — to  be  ab- 
sorbed by  individual  proprietors  and  then  devoted  very  largely 
to  the  senseless  luxury  of  an  idle  rich  class.  Against  this  mis- 
appropriation of  the  wealth  of  the  community,  the  Labor  Party — 
speaking  in  the  interests  not  of  the  wage-earners  alone,  but  of 
every  grade  and  section  of  producers  by  hand  or  by  brain,  not  to 
mention  also  those  of  the  generations  that  are  to  succeed  us,  and 
of  the  permanent  welfare  of  the  community — emphatically  pro- 
tests. One  main  pillar  of  the  house  that  the  Labor  Party  in- 
tends to  build  is  the  future  appropriation  of  the  surplus,  not  to  the 
enlargement  of  any  individual  fortune,  but  to  the  common  good. 
It  is  from  this  constantly  arising  surplus  (to  be  secured,  on  the 
one  hand,  by  nationalization  and  municipalization  and,  on  the 
other,  by  the  steeply  graduated  taxation  of  private  income  and 
riches)  that  will  have  to  be  found  the  new  capital  which  the 
community  day  by  day  needs  for  the  perpetual  improvement  and 
increase  of  its  various  enterprises,  for  which  we  shall  decline 
to  be  dependent  on  the  usury-exacting  financiers.  It  is  from  the 
same  source  that  has  to  be  defrayed  the  public  provision  for  the 
sick  and  infirm  of  all  kinds  (including  that  for  maternity  and 
infancy),  which  is  still  so  scandalously  insufficient;  for  the  aged 
and  those  prematurely  incapacitated  by  accident  or  disease,  now  in 
many  ways  so  imperfectly  cared  for;  for  the  education  alike  of 
children,  of  adolescents,  and  of  adults,  in  which  the  Labor  Party 
demands  a  genuine  equality  of  opportunity,  overcoming  all  dif- 
ferences of  material  circumstances;  and  for  the  organization  of 
public  improvements  of  all  kinds,  including  the  brightening  of  the 
lives  of  those  now  condemned  to  almost  ceaseless  toil,  and  a  great 
development  of  the  means  of  recreation.     From  the  same  source 


1 82     LABOR  AND  RECONSTRUCTION  IN  EUROPE 

must  come  the  greatly  increased  public  provision  that  the  Labor 
Party  will  insist  on  being  made  for  scientific  investigation  and 
original  research,  in  every  branch  of  knowledge,  not  to  say  also 
for  the  promotion  of  music,  literature,  and  fine  art,  which  have 
been  under  capitalism  so  greatly  neglected  and  upon  which,  so 
the  Labor  Party  holds,  any  real  development  of  civilization  funda- 
mentally depends.  Society,  like  the  individual,  does  not  live  by 
bread  alone — does  not  exist  only  for  perpetual  wealth  production. 
It  is  in  the  proposal  for  this  appropriation  of  every  surplus  for 
the  common  good — in  the  vision  of  its  resolute  use  for  the  building 
up  of  the  community  as  a  whole  instead  of  for  the  magnification 
of  individual  fortunes — that  the  Labor  Party,  as  the  party  of  the 
producers  by  hand  or  by  brain,  most  distinctively  marks  itself 
off  from  the  older  political  parties,  standing,  as  these  do,  essen- 
tially for  the  maintenance,  unimpaired,  of  the  perpetual  private 
mortgage  upon  the  annual  product  of  the  Nation  that  is  involved 
in   the    individual   ownership   of   land   and   capital. 

The  Street  of  To-morrozu.  The  house  which  the  Labor  Party 
intends  to  build,  the  four  pillars  of  which  have  now  been  de- 
scribed, does  not  stand  alone  in  the  world.  Where  will  it  be  in 
the  street  of  to-morrow?  If  we  repudiate,  on  the  one  hand,  the 
imperialism  that  seeks  to  dominate  other  races  or  to  impose 
our  own  will  on  other  parts  of  the  British  Empire,  so  we  disclaim 
equally  any  conception  of  a  selfish  and  insular  "noninterven- 
tionism,"  unregarding  of  our  special  obligations  to  our  fellow  citi- 
zens overseas;  of  the  corporate  duties  of  one  nation  to  another; 
of  the  moral  claims  upon  us  of  the  nonadult  races,  and  of  our 
own  indebtedness  to  the  world  of  which  we  are  part.  We  look 
for  an  ever-increasing  intercourse,  a  constantly  developing  ex- 
change of  commodities,  a  steadily  growing  mutual  understanding, 
and  a  continually  expanding  friendly  cooperation  among  all  the 
peoples  of  the  world.  With  regard  to  that  great  commonwealth 
of  all  races,  all  colors,  all  religions,  and  all  degrees  of  civilization 
that  we  call  the  British  Empire,  the  Labor  Party  stands  for  its 
maintenance  and  its  progressive  development  on  the  lines  of  local 
autonomy  and  "Home  Rule  All  Round";  the  fullest  respect  for 
the  rights  of  each  people,  whatever  its  color,  to  all  the  democratic 
self-government  of  which  it  is  capable,  and  to  the  proceeds  of  its 
own  toil  upon  the  resources  of  its  own  territorial  home;  and  the 
closest  possible  cooperation  among  all  the  various  members  of 
what  has  become  essentially  not  an  empire  in  the  old  sense,  but  a 
Britannic  alliance.  We  desire  to  maintain  the  most  intimate 
relations  with  the  Labor  parties  overseas.  Like  them,  we  have 
no  sympathy  with  the  projects  of  "imperial  federation,"  in  so  far 


THE  LABOR  PROBLEM  IN  ENGLAND  183 

as  these  imply  the  subjection  to  a  common  imperial  legislature 
wielding  coercive  power  (including  dangerous  facilities  for 
coercive  imperial  taxation  and  for  enforced  military  service) 
either  of  the  existing  self-governing  dominions,  whose  autonomy 
would  be  thereby  invaded,  or  of  the  United  Kingdom,  whose  free- 
dom of  democratic  self-development  would  be  thereby  hampered; 
or  of  India  and  the  colonial  dependencies,  which  would  thereby 
run  the  risk  of  being  further  exploited  for  the  benefit  of  a  "white 
empire."  We  do  not  intend,  by  any  such  "imperial  senate,"  either 
to  bring  the  plutocracy  of  Canada  and  South  Africa  to  the  aid 
of  the  British  aristocracy,  or  to  enable  the  landlords  and  financiers 
of  the  mother  country  to  unite  in  controlling  the  growing  popular 
democracies  overseas.  The  absolute  autonomy  of  each  self- 
governing  part  of  the  Empire  must  be  maintained  intact.  What 
we  look  for,  besides  a  constant  progress  in  democratic  self-govern- 
ment of  every  part  of  the  Britannic  alliance,  and  especially  in 
India,  is  a  continuous  participation  of  the  ministers  of  the 
dominions,  of  India,  and  eventually  of  other  dependencies  (per- 
haps by  means  of  their  own  ministers  specially  resident  in  Lon- 
don for  this  purpose)  in  the  most  confidential  deliberations  of  the 
cabinet,  so  far  as  foreign  policy  and  imperial  affairs  are  con- 
cerned; and  the  annual  assembly  of  an  imperial  council,  repre- 
senting all  constituents  of  the  Britannic  alliance  and  all  parties 
in  their  local  legislatures,  which  should  discuss  all  matters  of  com- 
mon interest,  but  only  in  order  to  make  recommendations  for  the 
simultaneous  consideration  of  the  various  autonomous  local  legis- 
latures of  what  should  increasingly  take  the  constitutional  form 
of  an  alliance  of  free  nations.  And  we  carry  the  idea  further. 
As  regards  our  relations  to  foreign  countries,  we  disavow  and 
disclaim  any  desire  or  intention  to  dispossess  or  to  impoverish  any 
other  state  or  nation.  We  seek  no  increase  of  territory.  We  dis- 
claim all  idea  of  "economic  war."  We  ourselves  object  to  all 
protective  customs  tariffs;  but  we  hold  that  each  nation  must  be 
left  free  to  do  what  it  thinks  best  for  its  own  economic  develop- 
ment, without  thought  of  injuring  others.  We  believe  that  nations 
are  in  no  way  damaged  by  each  other's  economic  prosperity  or 
commercial  progress;  but,  on  the  contrary,  that  they  are  actually 
themselves  mutually  enriched  thereby.  We  would  therefore  put 
an  end  to  the  old  entanglements  and  mystifications  of  secret 
diplomacy  and  the  formation  of  leagues  against  leagues.  We  stand 
for  the  immediate  establishment,  actually  as  a  part  of  the  treaty 
of  peace  with  which  the  present  war  will  end,  of  a  universal 
league  or  society  of  nations,  a  supernational  authority,  with  an 
international    high    court   to    try    all    justiciable    issues   between 


1 84    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

nations;  an  international  legislature  to  enact  such  common  laws 
as  can  be  mutually  agreed,  upon,  and  an  international  council 
of  mediation  to  endeavor  to  settle  without  ultimate  conflict  even 
those  disputes  which  are  not  justiciable.  We  would  have  all  the 
nations  of  the  world  most  solemnly  undertake  and  promise  to 
make  common  cause  against  any  one  of  them  that  broke  away 
from  this  fundamental  agreement.  The  world  has  suffered  too 
much  from  war  for  the  Labor  Party  to  have  any  other  policy  than 
that  of  lasting  peace. 

More  Light — but  also  More  Warmth.  The  Labor  Party  is  far 
from  assuming  that  it  possesses  a  key  to  open  all  locks;  or  that 
any  policy  which  it  can  formulate  will  solve  all  the  problems  that 
beset  us.  But  we  deem  it  important  to  ourselves  as  well  as  to 
those  who  may,  on  the  one  hand,  wish  to  join  the  party,  or,  on 
the  other,  to  take  up  arms  against  it,  to  make  quite  clear  and 
definite  our  aim  and  purpose.  The  Labor  Party  wants  that  aim 
and  purpose,  as  set  forth  in  the  preceding  pages,  with  all  its 
might.  It  calls  for  more  warmth  in  politics,  for  much  less  apa- 
thetic acquiescence  in  the  miseries  that  exist,  for  none  of  the 
cynicism  that  saps  the  life  of  leisure.  On  the  other  hand,  the 
Labor  Party  has  no  belief  in  any  of  the  problems  of  the  world 
being  solved  by  good  will  alone.  Good  will  without  knowledge  is 
warmth  without  light.  Especially  in  all  the  complexities  of  politics, 
in  the  still  undeveloped  science  of  society,  the  Labor  Party  stands 
for  increased  study,  for  the  scientific  investigation  of  each  suc- 
ceeding problem,  for  the  deliberate  organization  of  research,  and 
for  a  much  more  rapid  dissemination  among  the  whole  people  of 
all  the  science  that  exists.  And  it  is  perhaps  specially  the  Labor 
party  that  has  the  duty  of  placing  this  advancement  of  science  in 
the  forefront  of  its  political  program.  What  the  Labor  Party 
stands  for  in  all  fields  of  life  is,  essentially,  democratic  cooper- 
ation; and  cooperation  involves  a  common  purpose  which  can  be 
agreed  to,  a  common  plan  which  can  be  explained  and  discussed, 
and  such  a  measure  of  success  in  the  adaptation  of  means  to  ends 
as  will  insure  a  common  satisfaction.  An  autocratic  sultan  may 
govern  without  science,  if  his  whim  is  law.  A  plutocratic  party 
may  choose  to  ignore  science,  if  it  is  heedless  whether  its  pre- 
tended solutions  of  social  problems  that  may  win  political  triumphs 
ultimately  succeed  or  fail. 

But  no  Labor  Party  can  hope  to  maintain  its  position  unless 
the  proposals  are,  in  fact,  the  outcome  of  the  best  political  science 
of  its  time;  or  to  fulfill  its  purpose  unless  that  science  is  con- 
tinually wresting  new  fields  from  human  ignorance.  Hence,  al- 
though the  purpose  of  the  Labor  Party  must,  by  the  law  of  its 


THE  LABOR  PROBLEM  IN  ENGLAND  185 

being,  remain  for  all  time  unchanged,  its  policy  and  its  program 
will,  we  hope,  midergo  a  perpetual  development  as  knowledge 
grows  and  as  new  phases  of  the  social  problem  present  themselves 
in  a  continually  finer  adjustment  of  our  measures  to  our  ends. 
If  law  is  the  mother  of  freedom,  science,  to  the  Labor  Party,  must 
be  the  parent  of  law. 


List  of  British  Subcommittees  on  Reconstruction  *^ 

The  British  Ministry  of  Reconstruction  has  listed  the  com- 
missions and  committees  that  have  been  set  up,  both  within  that 
ministry  and  within  other  ministries  and  departments  of  the 
British  Government,  to  deal  with  questions  which  will  arise  at 
the  close  of  the  war.  These  commissions  and  committees,  which 
have  been  appointed  at  different  times  since  the  war  began,  now 
number  87  and  fall  into  15  groups: 

I.  Trade  Development,  under  which  grouping  are  five  com- 
mittees dealing  with  general  aspects  and  nine  dealing  with  spe- 
cific phases  of  the  situation. 

II.  Finance,  with  two  committees. 

HI.     Raw  Materials,  with  six  committees. 

IV.  Coal  and  Power,  with  two  committees  and  four  subcom- 
mittees. 

V.  Intelligence,  with  two  committees. 

VI.  Scientific  and  Industrial  Research,  with  two  research 
boards,  five  standing  committees,  seven  research  committees,  four 
inquiry  committees,  and  three  provisional  organization  commit- 
tees. 

VII.  Demobilization  and  Disposal  of  Stores,  with  eight  com- 
mittees. 

VIII.  Labor  and  Employment,  with  two  committees. 

IX.  Agriculture  and  Forestry,  with  four  committees. 

X.  Public  Administration,  with  six  committees. 

XI.  Housing,  with  four  committees. 

XII.  Education,  with  eight  committees  and  commissions. 

XIII.  Aliens,  with  two  committees. 

XIV.  Legal,  with   three  committees. 

XV.  Miscellaneous,  with  three  committees. 

**  Commerce  Reports,  Mar.  6,  1918.  This  was  published  as  a  report  to 
Parliament  and  reprinted. 


1 86  LABOR  AND  RECONSTRUCTION  IN  EUROPE 

A  summary  of  the  duties  of  these  commissions  and  committees 
and  the  name  of  the  ministry  or  other  Government  department 
under  which  these  bodies  function  are  given  herewith. 

I.  Development  of   Trade 

Commercial  and  Industrial  Policy  Committee.  (The  Prime 
Minister.) — To  consider  the  commercial  and  industrial  policy  to 
be  adopted  after  the  war,  with  special  reference  to  the  conclusions 
reached  at  the  Economic  Conference  of  the  Allies  and  to  the  fol- 
lowing questions:  (a)  What  industries  are  essential  to  the  future 
safety  of  the  Nation,  and  what  steps  should  be  taken  to  maintain 
or  establish  them?  (b)  What  steps  should  be  taken  to  recover 
home  and  foreign  trade  lost  during  the  war,  and  to  secure  new 
markets?  (c)  To  what  extent  and  by  what  means  the  resources 
of  the  Empire  should  and  can  be  developed?  (d)  To  what  extent 
and  by  what  means  the  sources  of  supply  within  the  Empire  can 
be  prevented  from  falling  under  foreign  control? 

Dominions  Royal  Commission. — To  inquire  and  report  upon  (a) 
the  natural  resources  of  the  five  self-governing  Dominions,  and 
the  best  means  of  developing  these  resources;  (b)  the  trade  of 
these  parts  of  the  Empire  with  the  United  Kingdom,  each  other, 
and  the  rest  of  the  world;  (c)  their  requirements  and  those  of  the 
United  Kingdom  in  the  matter  of  food  and  raw  materials,  together 
with  the  available  sources  of  supply;  and  to  make  recommen- 
dations and  suggest  methods  consistent  with  existing  fiscal  policy, 
by  which  the  trade  of  each  of  the  self-governing  Dominions  with 
the  others  and  with  the  United  Kingdom  could  be  improved  and- 
extended. 

Industrial  Development  Commission.  (Government  of  India.) — 
To  examine  and  report  upon  the  possibilities  of  further  in- 
dustrial development  in  India,  and  to  submit  its  recommendations 
with  special  reference  to  the  following  questions:  (a)  Whether 
new  openings  for  the  profitable  employment  of  Indian  capital  in 
commerce  and  industry  can  be  indicated,  (b)  Whether,  and,  if  so, 
in  what  manner,  the  Government  can  usefully  give  direct  en- 
couragement to  industrial  development  (i)  by  rendering  tech- 
nical advice  more  freely  available,  (2)  by  the  demonstration  of 
the  practical  possibility  on  a  commercial  scale  of  particular  in- 
dustries, (3)  by  affording,  directly  or  indirectly,  financial  assist- 
ance to  industrial  enterprises,  or  (4)  by  any  other  means  which 
are  not  incompatible  with  the  existing  fiscal  policy  of  the  Govern- 
ment of  Inf* 


THE  LABOR  PROBLEM  IN  ENGLAND         187 

Belgian  Trade  Committee.  (Foreign  Office  and  Board  of 
Trade.) — (i)  To  inquire  into  all  matters  relative  to  trade  be- 
tween the  British  Empire  and  Belgium,  with  a  view  to  increasing 
and  developing  that  trade  by  every  desirable  means. 

(2)  To  investigate,  as  far  as  possible,  all  means  to  be  adopted 
in  order  to  attain  the  object  set  out  in  paragraph  i.  The  com- 
mittee will  examine  into  the  supplies  and  requirements  of  the 
respective  countries  (in  so  far  as  they  have  relation  to  its  scope) 
and  give  advice  as  to  how  trade  between  them  can  be  best  estab- 
lished, developed,  and  increased.  It  will  obtain  information  and 
evidence  from  all  available  sources  and  endeavor  to  render  all 
possible  assistance  in  regard  to  shipping,  manufactures,  imports 
and  exports,  and  trade  generally  between  the  Empire  and  King- 
dom. 

(3)  The  committee  will  consist  of  three  representatives  ap- 
pointed by  the  Foreign  Office  and  three  representatives  appointed 
by  the  Board  of  Trade.  A  chairman  and  secretary  will  be  chosen 
from  their  number.  The  committee  shall  have  power  to  add  to 
its  numbers  by  the  appointment  of  such  persons  of  experience  in 
the  matters  with  which  it  has  to  deal  as  it  may  think  expedient, 
and  it  will  also  consult  from  time  to  time  other  representatives 
of  commerce  having  special  knowledge  of  Belgian  trade,  shipping, 
and  finance. 

(4)  It  is  particularly  laid  down  that  the  purpose  of  this  com- 
mittee shall  be  a  general  one,  and  that  it  shall  not  be  part  of  its 
duties  to  foster  the  advancement  of  the  trade  of  any  particular 
individual  or  firm,  nor  to  devote  its  assistance  to  any  special 
branch  of  trade  or  industry  except  in  relation  to  the  general  prin- 
ciples for  which  it  is  established. 

Trade  Relations  after  the  War  Committee.  {Board  of  Trade.)  — 
To  investigate  the  general  questions  of  trade  relations  after  the 
war  with  a  view  to  the  successful  promotion  of  British  trade, 
and  also  with  the  object  of  devising  measures  for  the  prevention 
of  the  effective  resumption  of  Germany's  policy  of  peaceful  pene- 
tration. 

Committee  on  the  Chemical  Trades.  {Ministry  of  Reconstruct 
tion.) — To  advise  as  to  the  procedure  which  should  be  adopted 
for  dealing  with  the  position  of  the  chemical  trades  after  the  war, 
with  a  view  to  the  creation  of  some  organization  which  should 
be  adequately  representative  of  the  trade  as  a  whole  and  by  means 
of  which  the  trade  may  be  enabled  hereafter  to  continue  to  develop 
its  own  resources  and  to  enlist  the  closest  cooperation  of  all  those 
engaged  in  the  chemical  industry. 


1 88    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

Engineering  Trades  {Nezv  Industries)  Committee.  {Ministry 
of  Reconstruction.) — To  compile  a  list  of  the  articles  suitable 
for  manufacture  by  those  with  engineering  trade  experience  or 
plant,  which  were  either  not  made  in  the  United  Kingdom  before 
the  war,  but  were  imported,  or  were  made  in  the  United  Kingdom 
in  small  or  insufficient  quantities,  and  for  which  there  is  likely 
to  be  a  considerable  demand  after  the  war,  classified  as  to  whether 
they  are  capable  of  being  made  by  (i)  women,  (2)  men  and 
women,  or  (3)  skilled  men;  and  setting  out  the  industries  to  which 
such  new  manufacturers  would  most  suitably  be  attached;  and  to 
make  recommendations  {a)  on  the  establishment  and  development 
of  such  industries  by  the  transfer  of  labor,  machines,  and  other- 
wise; (&)  as  to  how  such  a  transfer  could  be  made,  and  what 
organization  would  be  requisite  for  the  purpose,  with  due  regard 
to  securing  the  cooperation  of  labor. 

Board  of  Trade  Committees  on  the  Coal,  Electrical,  Engi- 
neering, Iron  and  Steel,  Nonferrous  Metal,  and  Textile  Trades, 
and  on  the  Shipping  and  Shipbuilding  Industries. — To  consider 
the  position  of  these  trades  and  industries  after  the  war,  with 
special  reference  to  international  competition,  and  to  report  what 
measures,  if  any,  are  necessary  or  desirable  to  safeguard  that 
position. 

II.  Finance 

Financial  Facilities  Committee.  {Treasury  and  Ministry  of  Re- 
construction.)— To  consider  and  report  whether  the  normal  ar- 
rangements for  the  provision  of  financial  facilities  for  trade  by 
means  of  existing  banking  and  other  financial  institutions  will  be 
adequate  to  meet  the  needs  of  British  industry  during  the  period 
immediately  following  the  termination  of  the  war,  and,  if  not,  by 
what  emergency  arrangements  they  should  be  supplemented,  re- 
gard being  had  in  particular  to  the  special  assistance  which  may 
be  necessary  (a)  to  facilitate  the  conversion  of  works  and  fac- 
tories now  engaged  upon  war  work  to  normal  production;  (&)  to 
meet  the  exceptional  demands  for  raw  materials  arising  from  the 
depletion  of  stocks. 

Enemy  Debts  Committee.  {Foreign  Office.) — To  report  on  the 
arrangements  to  be  adopted  for  the  liquidation  of  the  commercial, 
banking,  and  other  financial  transactions  between  British  and 
enemy  persons,  the  completion  of  which  was  prevented  by  the  out- 
break of  war,  and  for  this  purpose  to  consider  the  returns 
made  to  the  Custodians  of  Enemy  Property  and  to  the  Public 
Trustee  and  the  Foreign  Claims  Office,  and  any  information  on 
matters  relating  thereto. 


THE  LABOR  PROBLEM  IN  ENGLAND         189 

in.  Raw  Materials 

Central  Committee  on  Materials  Supply.  (Ministry  of  Recon- 
struction.)— To  consider  and  report  upon  (i)  the  nature  and 
amount  of  the  supplies  of  materials  and  foodstuffs  which,  in  the 
committee's  opinion,  will  be  required  by  the  United  Kingdom  dur- 
ing the  period  which  will  elapse  between  the  termination  of  the 
war  and  the  restoration  of  a  normal  condition  of  trade;  (2)  the 
probable  requirements  of  India,  the  Dominions,  and  Crown  Col- 
onies for  such  supplies  at  the  close  of  hostilities;  (3)  the  prob- 
able requirements  of  belligerents  and  neutrals  for  such  supplies 
at  the  close  of  hostilities;  (4)  the  sources  from  which  and  the 
conditions  under  which  such  supplies  can  be  obtained  and  trans- 
ported, and,  in  particular,  the  extent  to  which  they  might  be 
obtained  from  the  United  Kingdom  or  within  the  Empire  or  from 
allied  or  neutral  countries;  (5)  the  question  whether  any  measure 
of  control  will  require  to  be  exercised  in  regard  to  the  nature  and 
extent  of  any  such  control. 

Committee  on  the  Supply  of  Building  Materials.  (Ministry  of 
Reconstruction.)  —  (i)  To  inquire  into  the  extent  of  the  probable 
demand  for  building  material  for  all  purposes  which  will  arise 
in  this  country  during  the  transition  period,  and  the  extent  of 
the  available  supply  and  form  of  such  material.  (2)  To  inquire 
how  far  the  quantities  of  material  now  available  are  capable  of 
increase,  what  are  the  difficulties  in  increasing  them,  and  how 
these  difficulties  can  be  removed,  and  to  report  to  what  extent  an 
increase  in  production  will  affect  the  price  of  the  materials.  (3)  In 
the  event  of  the  supply  of  material  or  labor  being  insufficient  to 
fulfill  the  total  building  demand,  to  consider  the  principles  and 
method  by  which  the  priority  of  various  claims  should  be  settled, 
and  to  report  what  steps  are  necessary  to  insure  that  the  manufac- 
ture of  the  materials,  so  far  as  they  are  at  present  inadequate, 
shall  be  extended  in  time  to  secure  sufficient  quantities  for  use 
when  required  on  the  cessation  of  hostilities,  and  to  recommend 
what  steps  should  be  taken  during  the  war  to  facilitate  a  prompt 
commencement  of  building  work  at  that  time.  (4)  Generally,  to 
consider  and  report  upon  any  conditions  affecting  the  building 
trades  which  tend  to  cause  unduly  high  prices,  and  to  make 
recommendations  in  regard  to  any  measure  of  control  which  it 
may  be  desirable  to  exercise  over  the  purchase,  production,  trans- 
port, or  distribution  of  materials. 

Committee  on  Cotton-Growing  within  the  Empire.     (Board  of 
Trade.) — To  investigate  the  best  means  of  developing  the  grow- 


190  LABOR  AND  RECONSTRUCTION  IN  EUROPE 

ing  of  cotton  within  the  Empire  and  to  advise  the  Government 
as  to  the  necessary  measures  to  be  taken  for  this  purpose. 

Indian  Cotton  Committee.  {Government  of  India.)  —  (i)  To 
consider  the  work  that  has  already  been  done  toward  the  establish- 
ment of  long-staple  cottons.  (2)  To  determine  the  measure  of  suc- 
cess achieved,  or  in  the  case  of  failure  the  reasons  therefor, 
whether  these  are  due  to  agricultural  or  economic  causes  or  to 
administrative  difficulties.  (3)  To  carry  out  a  detailed  study  of 
local  conditions  in  each  cotton-growing  tract  and  to  inquire  into 
the  methods  of  ginning  and  marketing.  (4)  To  consider  the 
possibility  of  developing  long-staple  cottons  in  India  if  sufficient 
funds  and  staff  are  devoted  solely  to  that  object  and  to  submit 
recommendations  as  to  the  staff  required  and  the  organization 
necessary. 

Committee  on  Edible  and  Oil-Producing  Ntds  and  Seeds.  {Co- 
lonial Office.) — To  consider  and  report  upon  the  present  condition 
and  the  prospects  of  the  West  African  trade  in  palm  kernels 
and  other  edible  and  oil-producing  nuts  and  seeds,  and  to  make 
recommendations  for  the  promotion  in  the  United  Kingdom  of 
the  industries  dependent  thereon. 

Nitrogen  Products  Committee.  {Ministry  of  Munitions.) — To 
consider  the  relative  advantages  for  this  country  and  for  the  Em- 
pire of  the  various  methods  for  the  fixation  of  atmospheric  nitro- 
gen from  the  point  of  view  of  both  war  and  peace  purposes,  to 
ascertain  their  relative  costs,  and  to  advise  on  proposals  relevant 
thereto  which  may  be  submitted  to  the  department.  (2)  To  ex- 
amine into  the  supply  of  the  raw  materials  required — e.  g.,  pure 
nitrogen  and  hydrogen — and  into  the  utilization  of  the  by-products 
obtained.  (3)  Since  some  of  the  processes  employed  depend  for 
their  success  on  the  provision  of  large  supplies  of  cheap  power, 
to  ascertain  where  and  how  this  can  best  be  obtained.  (4)  To 
consider  what  steps  can  with  advantage  be  taken  to  conserve  and 
increase  the  national  resources  of  nitrogen-bearing  compounds 
and  to  limit  their  wastage.  (5)  To  carry  out  the  experimental 
work  necessary  to  arrive  at  definite  conclusions  as  to  the  practi- 
cability and  efficiency  of  such  processes  as  may  appear  to  the  com- 
mittee to  be  of  value.  (6)  As  a  result  of  the  foregoing  steps,  to 
advise  as  to  starting  operations  on  an  industrial  scale. 

IV.  Coal  and  Power 

Coal  Conservation  Committee.  {Ministry  of  Reconstruction.) — 
To  consider  and  advise  (i)  what  improvements  can  be  effected  in 
the  present  methods  of  mining  coal  with  a  view  to  prevent  loss 


I 


THE  LABOR  PROBLEM  IN  ENGLAND         191 

of  coal  in  working  and  to  minimize  cost  of  production;  (2)  what 
improvements  can  be  effected  in  the  present  methods  of  using 
coal  for  production  of  power,  light,  and  heat  and  of  recovering 
by-products  with  a  view  to  insure  the  greatest  possible  economy  in 
production  and  the  most  advantageous  use  of  the  coal  substance; 
(3)  whether,  with  a  view  to  our  maintaining  our  industrial  and 
commercial  position,  it  is  desirable  that  any  steps  should  be  taken 
in  the  near  future,  and  if  so,  what  steps,  to  secure  the  development 
of  new  coal  fields  or  extensions  of  coal  fields  already  being 
worked. 

Mining,  Power  Generation  and  Transmission,  Carbonisation, 
and  Geological  Sub-Committees. — The  question  of  the  application 
of  carbonization  to  the  preparation  of  fuel  for  industrial  and  com- 
mercial purposes. 

Committee  on  Supply  of  Electricity.  (Board  of  Trade.) — To 
consider  and  report  what  steps  should  be  taken,  whether  by  legis- 
lation or  otherwise,  to  insure  that  there  shall  be  an  adequate  and 
economical  supply  of  electric  power  for  all  classes  of  consumers 
in  the  United  Kingdom,  particularly  industries  which  depend  upon 
a  cheap  supply  of  power  for  their  development. 

V.  Intelligence 

Committee  on  Colonial  Blue  Books.  (Colonial  Office.) — (i) 
To  consider  the  recent  correspondence  with  Sir  W.  Clark,  of  the 
Commercial  Intelligence  Department,  arising  out  of  inquiries  from 
certain  public  bodies,  and  to  report  to  what  extent  Blue  Books 
and  Blue  Book  Reports  meet  existing  requirements,  and  whether 
any  steps  can  be  taken  to  improve  or  supplement  them  or  make 
them  more  accessible.  (2)  To  consider  whether  any  steps  should 
be  taken  in  this  country  to  furnish  the  Colonies,  etc.,  with  any  kind 
of  quid  pro  quo  for  their  Blue  Book  Reports. 

Imperial  Mineral  Resources  Bureau  Committee.  (Ministry  of 
Munitions.) — To  prepare  a  scheme  for  the  establishment  in  Lon- 
don of  an  Imperial  Mineral  Resources  Bureau  (a)  to  collect 
information  in  regard  to  the  mineral  resources  and  metal  require- 
ments of  the  Empire  and  (b)  to  advise  what  action,  if  any,  may 
appear  desirable  to  enable  such  resources  to  be  developed  and 
made  available  to  meet  requirements. 


VI.  Scientific  and  Industrial  Research 

The  following  21  committees  have  been  established  by  the  De- 
partment of  Scientific  and  Industrial  Research : 


192    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

Fuel  Research  Board. — To  investigate  the  nature,  preparation, 
and  utilization  of  fuel  of  all  kinds,  both  in  the  laboratory  and, 
where  necessary,  on  an  industrial  scale. 

Cold  Storage  Research  Board. — Appointed  to  organize  and  con- 
trol research  into  problems  of  the  preservation  of  food  products 
by  cold  storage  and  otherwise. 

Standing  Committees  on  Engineering,  Metallurgy,  Mining,  and 
Glass  and  Optical  Instruments. — To  advise  the  council  on  re- 
searches relating  to  the  lines  of  activity  named  and  on  such  mat- 
ters as  may  be  referred  to  the  committee  by  the  Advisory  Council. 

Joint  Standing  Committee  on  Illuminating  Engineering. — To 
survey  the  field  for  research  on  illumination  and  illuminating 
engineering,  and  to  advise  as  to  the  directions  in  which  research 
can  be  undertaken  with  advantage. 

Mine  Rescue  Apparatus  Research  Committee. — To  inquire  into 
the  types  of  breathing  apparatus  used  in  coal  mines,  and  by  ex- 
periment to  determine  the  advantages,  limitations,  and  defects 
of  the  several  types  of  apparatus,  what  improvements  in  them  are 
possible,  and  whether  it  is  advisable  that  the  types  used  in  mines 
should  be  standardized,  and  to  collect  evidence  bearing  on  these 
points. 

Abrasives  and  Polishing  Powders  Research  Committee. — (i) 
To  conduct  investigations  on  abrasives  and  polishing  powders  with 
a  view  to  their  preparation  and  use  as  one  factor  in  accelerating 
the  output  of  lenses  and  prisms  for  optical  instruments,  not  only 
for  peace  requirements,  but  in  connection  with  the  war.  (2)  To 
investigate  the  preparation  and  properties  of  abrasives  and  polish- 
ing powders. 

Food  Research  Committee. — To  direct  research  on  problems  in 
the  cooking  of  vegetables  and  meat,  and  in  bread  making,  to  be 
undertaken  by  two  scholars  of  the  committee  of  council. 

Building  Materials  Research  Committee. — To  make  arrange- 
ments for  carrying  out  researches  on  building  construction  insti- 
tuted by  the  department  at  the  instance  of  the  Local  Government 
Board  Committee  or  otherwise,  to  be  responsible  under  the  council 
for  the  direction  of  such  researches,  and  to  deal  with  such  other 
matters  as  may  be  referred  to  the  committee  from  time  to  time  by 
the  council. 

Electrical  Research  Committee. — A  committee  of  direction  ap- 
pointed in  connection  with  certain  researches  affecting  the  elec- 
trical industry. 

Committee  for  Research  on  Vitreous  Compounds  and  Cements 
for  Lenses  and  Prisms. — To  conduct  researches  into  the  prepara- 


THE  LABOR  PROBLEM  IN  ENGLAND  193 

tion,  properties,  and  mode  of  employment  of  cements  for  lenses 
and  prisms;  to  prepare  a  reference  list  of  vitreous  compounds, 
their  composition,  densities,  refractive  indices,  and  dispersive 
povi^ers. 

Tin  and  Tungsten  Research  Board. — The  Cornish  Chamber  of 
Mines  has  been  invited  to  nominate  a  representative  of  the  land- 
lords and  a  representative  of  the  mine  owners  to  serve  on  the 
board.  A  committee  of  control  appointed  in  connection  with  cer- 
tain researches  into  tin  and  tungsten. 

Lubricants  and  Lubrication  Inquiry  Committee. — To  prepare  a 
memorandum  on  the  field  for  research  on  lubricants  and  lubri- 
cation, which  will  contain  an  analysis  of  the  problems  involved, 
together  with  a  suggested  scheme  of  research  which  would  be 
most  likely  to  lead  to  valuable  results. 

Chemistry  of  Lubricants  Suhcommittee. — To  collect  and  re- 
view the  existing  information  relating  to  the  chemistry  of  lubri- 
cants and  lubricating  oils. 

Zinc  and  Copper  Research  and  Inquiry  Committee. — To  collect 
and  review  the  existing  information  as  to  the  copper  and  zinc  in- 
dustries upon  which  future  research  must  be  based,  to  formulate 
proposals  for  carrying  out  the  research  suggested  by  the  Brass  and 
Copper  Tube  Association  of  Great  Britain  into  the  best  methods 
of  making  sound  castings  of  copper  and  brass  for  tube  making 
and  to  prepare  an  estimate  of  their  cost;  and  to  report  to  the 
Advisory  Council. 

Irish  Peat  Inquiry  Committee. — To  inquire  into  and  consider 
the  experience  already  gained  in  Ireland  in  respect  of  the  winning, 
preparation,  and  use  of  peat  for  fuel,  and  for  other  purposes,  and 
to  suggest  what  means  shall  be  taken  to  ascertain  the  conditions 
under  which,  in  the  most  favorably  situated  localities,  it  can  be 
profitably  won,  prepared,  and  used,  having  regard  to  the  economic 
conditions  of  Ireland;  and  to  report  to  the  Fuel  Research  Board. 

Provisional  Committee  on  Research  and  Education  for  the  Cot- 
ton Industry. — A  committee  appointed  with  a  view  to  the  organ- 
ization of  a  Research  Association  for  the  Cotton  Industry. 

Provisional  Committee  on  Research  for  the  Wool  and  Worsted 
Industries. — A  committee  appointed  with  a  view  to  the  organ- 
ization of  a  Research  Association  for  the  Wool  and  Worsted  In- 
dustries. 

Provisional  Committee  for  the  Internal  Combustion  Engine 
Industry. — A  committee  appointed  with  a  view  to  the  organ- 
ization of  a  Research  Association  for  the  Internal  Combustion 
Engine  Industry. 


194    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

VII.  Demobilization  and  Disposal  of  Stores 

Demobilization  of  the  Army  Committee. — To  consider  and  re- 
port upon  the  arrangements  for  the  return  to  civil  employment 
of  oflGcers  and  men  serving  in  the  land  forces  of  the  Crown  at  the 
end  of  the  war. 

Oncers'  Resettlement  Subco-mmittee. — To  consider  and  report 
what  arrangements  require  to  be  and  can  be  made  on  demobiHza- 
tion  for  resettlement  of  officers  in  civil  life,  and  also  of  men 
belonging  to  classes  to  which,  in  the  main,  officers  belong. 

Disabled  Officers'  Employment  Com^mittee.  {India  and  Colonial 
Offices.) — To  assist  disabled  or  invalided  officers  who  may  be 
desirous  of  obtaining  employment  in  India,  Burma,  the  Eastern 
colonies,  and  Malay  States. 

War  Office  Demobilization  Committee. — To  consider  questions 
requiring  settlement  in  connection  with  the  demobilization  of  the 
Arm.y  in  so  far  as  they  fall  within  the  province  of  the  War  De- 
partment; to  act  as  a  link  with  the  committee  of  the  Ministry  of 
Reconstruction;  and  to  prepare  a  draft  scheme  of  demobilization. 

Demobilization  Coordination  Committee.  {Admiralty,  War 
Office,  and  Ministry  of  Labor.) — (i)  To  consider  how  far  the 
proposed  special  arrangements  to  demobilize,  immediately  peace  is 
declared,  men  specially  required  in  connection  with  the  work  of 
demobilization  can  or  should  be  extended  to  other  men  belonging 
to  the  public  services  or  to  similar  "pivotal"  men  in  industry.  (2) 
To  coordinate  the  working  of  the  demobilization  scheme  of  the 
War  Department  with  the  resettlement  scheme  of  the  Ministry 
of  Labor.  (3)  To  settle,  during  demobilization,  instructions  with 
regard  to  priority  which  may  appear  to  be  rendered  necessary  on 
public  grounds  or  by  the  sort  of  employment  in  the  different 
industries. 

CivilWar  Workers'  Committee.  {Ministry  of  Reconstruction.) — 
To  consider  and  report  upon  the  arrangements  which  should  be 
made  for  the  demobilization  of  workers  engaged  during  the  war 
in  national  factories,  controlled  establishments,  and  other  plants 
engaged  in  the  production  of  munitions  of  war  and  on  Govern- 
ment contracts,  or  in  plants  where  substitute  labor  has  been  em- 
ployed for  the  duration  of  the  war. 

Horse  Demobilization  Committee.  {War  Office.) — To  frame 
proposals  for  the  demobilization  of  horses  and  mules  in  relation 
to  the  general  scheme  of  demobilization. 

Disposal  of  War  Stores  Advisory  Board.  {Ministry  of  Re- 
construction.)— To  expedite  the  preparation  of  any  necessary 
inventories   of  property  and  goods   of   all   descriptions   held   by 


THE  LABOR  PROBLEM  IN  ENGLAND  195 

Government  departments,  and  to  consider  and  advise  upon  the 
disposal,  or  alternative  form  of  use,  of  any  property  or  goods 
which  have  or  may  become,  during  or  on  the  termination  of  the 
war,  surplus  to  the  requirements  of  any  department  for  the  pur- 
poses of  that  department. 


VIIL  Labor  and  Employment 

Committee  on  Relations  betiveen  Employers  and  Employed. 
{Ministry  of  Recanstruction.) — (i)  To  make  and  consider  sug- 
gestions for  securing  a  permanent  improvement  in  the  relations 
between  employers  and  workmen.  (2)  To  recommend  means  for 
securing  that  industrial  conditions  affecting  the  relations  between 
employers  and  workmen  shall  be  systematically  reviewed  by  those 
concerned,  with  a  view  to  improving  conditions  in  the  future. 

Women's  Employment  Committee.  {Ministry  of  Reconstruc- 
tion.)— To  consider  and  advise  in  the  light  of  experience  gained 
during  the  war  upon  the  opportunities  for  the  employment  of 
women,  and  the  conditions  of  such  employment,  in  clerical,  com- 
mercial,  agricultural,   and   industrial   occupations  after   the   war. 


IX.  Agriculture  and  Forestry 

Agricultural  Policy  Committee.  {Ministry  of  Reconstruction.) — 
Having  regard  to  the  need  of  increasing  home-grown  food  sup- 
plies in  the  interest  of  national  security,  to  consider  and  report 
upon  the  methods  of  effecting  such  increase. 

Forestry  Committee.  {Ministry  of  Reconstruction.) — To  con- 
sider and  report  upon  the  best  means  of  conserving  and  develop- 
ing the  woodland  and  forestry  resources  of  the  United  Kingdom, 
having  regard  to  the  experience  gained  during  the  war. 

Land  Settlement  Committee.  {Board  of  Agriculture.) — To  ex- 
plore the  whole  question  of  the  provision  made  for  ex-service  men 
and  to  report  what  timely  steps  should  be  taken  in  readiness  to 
meet  the  expected  situation  on  demobilization.  Also  to  consider 
and  report  upon  (a)  the  extinction  of  tithe  rent  charge  by 
exchange  for  a  proportionate  amount  of  land,  {b)  the  taking  over 
of  glebe  land  and  charity  land  on  payment  of  agreed  income. 

Horse-Brccding  Committee.  {Board  of  Agriculture.) — To  ad- 
vise as  to  the  distribution  of  surplus  army  mares  after  the  war, 
the  formation  of  a  staff  to  assist  and  supervise  light  horse  breed- 
ing, and  other  kindred  matters. 


196    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

X.  Public  Administration 

Machinery  of  Government  Committee.  {Ministry  of  Recon- 
struction.)— To  inquire  into  the  responsibilities  of  the  various  de- 
partments of  the  central  executive  Government,  and  to  advise  in 
what  manner  the  exercise  and  distribution  by  the  Government  of 
its  functions  should  be  improved. 

Local  Government  Committee.  (Ministry  of  Reconstruction.) — 
To  consider  and  report  upon  the  steps  to  be  taken  to  secure  the 
better  coordination  of  public  assistance  in  England  and  Wales, 
and  upon  such  other  matters  affecting  the  system  of  local  govern- 
ment as  may  from  time  to  time  be  referred  to  it. 

Committee  on  the  Acquisition  of  Land  for  Public  Purposes. 
(Ministry  of  Reconstruction.) — To  consider  and  report  upon  the 
defects  in  the  existing  system  of  law  and  practice  involved  in  the 
acquisition  and  valuation  of  land  for  public  purposes,  and  to 
recommend  any  changes  desirable  in  the  public  interest. 

National  Registration  Committee.  (Local  Government  Board.) — 
To  consider  (i)  the  question  of  the  registration  of  the  popula- 
tion for  administrative  and  other  national  purposes,  and  (2)  what 
changes,  if  any,  are  desirable  in  the  system  of  registration  of 
births,  deaths,  and  marriages  in  England  and  Wales. 

Committee  on  Road  Locomotives  and  Heavy  Motor  Cars. 
(Local  Government  Board.) — To  consider  the  law  and  regula- 
tions relating  to  the  construction  and  use  of  road  locomotives  and 
heavy  motor  cars  in  Great  Britain,  and  to  report  what  amend- 
ments, if  any,  are  desirable. 

Dentists  Act  Committee.  (Privy  Council.) — To  investigate  the 
extent  and  gravity  of  the  evils  connected  with  the  practice  of 
dentistry  and  dental  surgery  by  persons  not  qualified  under  the 
Dentists  Act,  and  to  consider  and  report  upon  (i)  the  causes  of 
the  present  inadequate  supply  of  qualified  dentists  and  dental  sur- 
geons; (2)  the  expediency  of  legislation  prohibiting  in  the  United 
Kingdom  the  practice  of  dentistry  and  dental  surgery  by  unquali- 
fied persons;  and,  in  the  event  of  such  legislation  being  deemed 
expedient,  the  conditions  under  which  certain  classes  of  unquali- 
fied persons  at  present  engaged  in  the  practice  of  dentistry  might 
be  permitted  to  continue  in  practice,  by  the  institution  of  a  special 
roll  for  the  purpose;  (3)  the  practicability,  without  impairing  the 
existing  guaranties  for  the  efficient  practice  of  dentistry,  of  (a) 
modifying  the  course  of  study  and  examination  prescribed  for 
dental  qualifications,  (b)  reducing  the  time  occupied,  and  (c) 
diminishing  the  cost  of  training  dental  students. 


THE  LABOR  PROBLEM  IN  ENGLAND  197 

XL  Housing 

Local  Government  Board  Conference  on  Housing. — To  con- 
sider (i)  methods  of  ascertaining  the  housing  needs  of  each  dis- 
trict; (2)  the  extent  to  which  local  authorities,  public-utility 
societies,  and  private  enterprise  can  be  relied  on  to  meet  needs ; 
(3)  State  assistance;  (4)  amendments  in  law  with  a  view  to 
facilitating  building;  and  (5)   definition  of  working  classes. 

Advisory  Housing  Panel.  (Ministry  of  Reconstruction.) — Cer- 
tain members  of  the  Reconstruction  Committee  were  invited  by 
the  Minister  of  Reconstruction  to  complete  a  general  review, 
which  they  had  undertaken  on  behalf  of  the  committee,  of  the 
housing  question  as  it  would  present  itself  at  the  close  of  the  war, 
and  to  prepare  a  memorandum  on  the  subject. 

Committee  on  Building  By-Laws.  (Local  Government  Depart- 
ment.)— To  consider  the  control  at  present  exercised  in  England 
and  Wales  over  the  erection  of  buildings  and  the  construction  of 
streets,  by  means  of  by-laws  and  local  regulations,  and  their  effect 
upon  building  and  development,  and  to  make  recommendations. 

Housing  (Building  Construction)  Committee.  (Local  Govern- 
ment Board.) — To  consider  questions  of  building  construction  in 
connection  with  the  provision  of  dwellings  for  the  working  classes 
in  England  and  Wales,  and  report  upon  methods  of  securing  econ- 
omy and  dispatch  in  the  provision  of  such  dwellings. 

XIL  Education 

Royal  Commission  on  University  Education  in  Wales. — To  in- 
quire into  the  organization  and  work  of  the  University  of  Wales 
and  its  three  constituent  colleges,  and  into  the  relations  of  the 
University  to  those  colleges  and  to  other  institutions  in  Wales  pro- 
viding education  of  a  post-secondary  nature,  and  to  consider  in 
what  respects  the  present  organization  of  university  education  in 
Wales  can  be  improved  and  what  changes,  if  any,  are  desirable  in 
the  constitution,  functions,  and  powers  of  the  University  and  its 
three  colleges. 

Adidt  Education  Committee.  (Ministry  of  Reconstruction.)  — 
To  consider  the  provision  for  and  possibilities  of  adult  education 
(other  than  technical  or  vocational)  in  Great  Britain,  and 
to  make  recommendations. 

Committee  on  Jttvenile  Education  in  Relation  to  Employment 
After  the  War.  (Board  of  Education.) — To  consider  what  steps 
should  be  taken  to  make  provision  for  the  education  and  instruc- 
tion of  children  and  young  persons  after  the  war,  regard  being 


198    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

had  particularly  to  the  interests  of  those  (i)  who  have  been  ab- 
normally employed  during  the  war;  (2)  who  can  not  immediately 
find  advantageous  employment;  or  (3)  who  require  special  train- 
ing for  employment. 

Committee  on  the  Teaching  of  Modem  Languages.  (The  Prime 
Minister.) — To  inquire  into  the  position  occupied  by  the  study 
of  modern  languages  in  the  educational  systems  of  Great  Britain, 
especially  in  secondary  schools  and  universities,  and  to  advise 
what  measures  are  required  to  promote  their  study,  regard  being 
had  to  the  requirements  of  a  liberal  education,  including  an  appre- 
ciation of  the  history,  literature,  and  civilization  of  other  coun- 
tries, asd  to  the  interest  of  commerce  and  public  service. 

Committee  on  the  Teaching  of  Science.  (The  Prime  Minister.)  — 
To  inquire  into  the  position  occupied  by  natural  science  in  the 
educational  systems  of  Great  Britain,  especially  in  secondary 
schools  and  universities,  and  to  advise  what  measures  are  needed 
to  promote  its  study,  regard  being  had  to  the  requirements  of  a 
liberal  education,  to  the  advancement  of  pure  science,  and  to  the 
interests  of  the  trades,  industries,  and  professions  which  par- 
ticularly depend  upon  applied  science. 

Committee  on  Principles  of  Arrangements  Determining  Salaries 
of  Teachers  in  Elementary  Schools.  (Board  of  Education.) — To 
inquire  into  the  principles  which  should  determine  the  construc- 
tion of  scales  of  salary  for  teachers  in  elementary  schools,  due 
regard  being  had  to  such  differentiation,  if  any,  in  respect  of 
locality,  duties,  qualifications,  sex,  and  other  relevant  consider- 
ations as  is  consistent  with  or  necessary  for  the  organization  of 
the  teaching  service  throughout  the  country  on  a  system  conducive 
to  the  efficiency  of  national  education. 

Committee  on  Principles  of  Arrangements  Determining  Salaries 
of  Teachers  in  Secondary,  Technical,  etc..  Schools.  (Board  of 
Education.) — To  inquire  into  the  principles  which  should  de- 
termine the  fixing  of  salaries  for  teachers  in  secondary  and  tech- 
nical schools,  schools  of  art,  training  colleges,  and  other  insti- 
tutions for  higher  education  (other  than  university  institutions), 
due  regard  being  had  to  such  differentiation  in  respect  of  locality, 
duties,  qualifications,  sex,  and  other  relevant  considerations  as  is 
coasistent  with  or  necessary  for  the  organization  of  the  teaching 
service  throughout  the  country  on  a  system  conducive  to  the 
efficiency  of  national  education. 

Juvenile  Organizations  Committee.  (Home  Office.) — To  con- 
sider (i)  what  steps  can  be  taken  to  attract  boys  and  girls  to  be- 
come members  of  brigades  and  clubs;  (2)  the  possibility  of  trans- 
ferring a  boy  or  girl  from  one  organization  to  another  when  this 


THE  LABOR  PROBLEM  IN  ENGLAND  199 

seems  desirable;  (3)  the  steps  to  be  taken  to  prevent  overlapping 
of  work;  (4)  the  strengthening  of  weaker  units;  (5)  the  diffi- 
culty of  obtaining  officers;  (6)  difficulties  in  securing  the  use  of 
school  premises  as  clubrooms  or  play  centers,  and  other  matters 
relating  to  the  effectiveness  of  brigades  and  clubs. 

XIIL  Aliens. 

Aliens  Committee.  (Ministry  of  Reconstruction.) — To  consider 
(a)  the  questions  which  will  arise  at  the  end  of  the  war  in  con- 
nection with  the  presence  in  this  country  of  persons  of  an  enemy 
nationality,  and  whether  the  repatriation  of  such  is  desirable,  and 
if  so,  in  what  cases;  (b)  what  restrictions,  if  any,  should  be  im- 
posed after  the  war  on  admission  of  aliens  to  this  country  and 
their  residence  here;  (c)  whether  any  changes  in  the  law  or  prac- 
tice of  nationalization  have  been  shown  by  the  experience  of  the 
war  to  be  required  in  the  public  interest. 

Interdepartmental  Conference  on  Missions  in  India. — To  con- 
sider the  conditions  on  which  aliens  should  after  the  war  be 
allowed  to  conduct  missionary  or  educational  work  in  India. 

XIV.  Legal 

Committee  on  the  Interpretation  of  the  Term  ''Period  of  the 
War."  (The  Attorney  General.) — (a)  To  inquire  into  the  legal 
questions  that  may  arise  as  to  the  determination  of  the  date  of  the 
termination  of  the  war  for  the  purpose  of  the  various  acts,  orders, 
and  regulations  the  duration  of  which  depends  directly  or  indirectly 
upon  the  date;  (b)  to  consider  and  advise  upon  the  meaning  of 
the  form  or  forms  of  temporary  commission  and  voluntary  at- 
testation in  use  in  H.  M.  Forces  since  the  beginning  of  the  war, 
with  a  view  to  determining  the  rights  of  officers  and  men  to  re- 
lease from  H.  M.  Services  at  its  termination,  and  to  make  any 
recommendations  thereon  which  seem  desirable;  (c)  to  consider 
the  effect  of  the  termination  of  the  war  upon  Government  and 
private  contracts,  and  whether  any  legislative  or  other  steps  are 
necessary  to  assist  in  determining  questions  likely  to  arise  in  this 
connection;  (d)  to  consider  the  effect  upon  contracts  of  appren- 
ticeship and  other  arrangements  for  learning  a  trade  or  profes- 
sion entered  into  by  officers  and  men  now  serving  in  H.  M.  Forces 
of  (i)  voluntary  acceptance  of  a  commission  or  enlistment,  (2) 
compulsory  service,  and  (3)  the  termination  of  the  war,  and  to 
make  any  recommendations  thereon  which  seem  desirable,  and 
to  report  thereon. 


200    LABOR  AND  RECONSTRUCTION  IN  EUROPE 

IVar  Office  Emergency  Legislation  Committee. — This  committee 
was  set  up  by  the  Army  Council  in  July  last  to  consider  which  (if 
any)  of  the  Emergency  Acts,  and  the  regulations  made  thereunder, 
it  may  be  necessary  or  advisable  to  continue  in  force  after  the 
termination  of  the  war  for  the  purpose  of  facilitating  the  process 
of  demobilization  and  reconstruction. 

Committee  on  Pre-War  Contracts.  {Board  of  Trade.) — To 
consider  and  report  on  the  position  of  British  manufacturers  and 
merchants  after  the  war  in  respect  of  contracts  entered  into  by 
them  prior  to  the  war  with  persons  or  companies  in  the  United 
Kingdom,  or  in  allied  or  neutral  countries,  the  fulfillment  of  which 
has  been  prevented  or  impeded  by  the  war,  and  as  to  the  measures, 
if  any,  which  are  necessary  or  desirable  in  this  respect. 

XV.  Miscellaneous 

Ministry  of  Munitions  Committee  on  Reconstruction  and  De- 
mobilization.— This  committee  has  been  appointed  to  deal  with 
all  matters  within  the  Ministry  relating  to  reconstruction  and  de- 
mobilization. 

Empire  Settlement  Committee.  {Colonial  Office.) — (i)  To  con- 
sider and  report  on  the  measures  to  be  taken  for  settling  within 
the  Empire  ex-soldiers  who  may  desire  to  emigrate  after  the  war. 
(2)  To  collect  and  prepare  for  distribution  to  intending  emigrants 
of  this  class  information  which  shall  show  clearly  the  nature  of 
any  facilities  afforded  by  the  Government  of  the  Dominions  and 
States.  (3)  To  advise  as  to  the  best  methods  of  making  this  in- 
formation accessible  to  the  troops.  (4)  To  make  recommenda- 
tions as  to  the  steps  which  should  be  taken  by  His  Majesty's 
Government,  in  concert  with  the  governments  of  the  States  and 
Dominions,  for  the  constitution  of  a  central  authority  to  supervise 
and  assist  such  emigration. 

Civil  Aerial  Transport  Committee.  {Air  Ministry.) — To  con- 
sider and  report  to  the  Air  Board  with  regard  to  (i)  the  steps 
which  should  be  taken  with  a  view  to  the  development  and  regu- 
lation, after  the  war,  of  aviation  for  civil  and  commercial  pur- 
poses from  a  domestic  and  imperial  and  an  international  stand- 
point; (2)  the  extent  to  which  it  will  be  possible  to  utilize  for 
this  purpose  the  trained  personnel  and  the  aircraft  which  the  con- 
clusion of  peace  may  leave  surplus  to  the  requirements  of  the 
naval  and  military  air  services  of  the  United  Kingdom  and  over- 
seas dominions. 


BIBLIOGRAPHY 


I.    GREAT   BRITAIN 


The  Industrial  Outlook,  by  various  authors.     H.  Sanderson  Fur- 
niss.     London,  Chatto  &  Windus,  191 7. 
The  papers  include : 
Employers  and  property,  by  George  W.  Daniels,  University  of 

Manchester. 
The  war  and  the  status  of  the  ^rage-earner,  by  Henry  Clay, 

author  of  Economics  for  the  General  Reader. 
Labor  organization,  by  J.  R.  Taylor,  University  of  Leeds. 
The  control  of  industry  by  producers  and  consumers,  by  Wil- 
liam Piercy,  London  School  of  Economics. 
Rural  problems,  by  Arthur  W.  Ashby,  Institute  for  Research 

in  Agricultural  Economics,  University  of  Oxford. 
Credit  and  banking,  by  T.  E.  Gregory,  London  School  of  Eco- 
nomics. 
Industry  and  taxation,  and  the  State  control  of  industry,  by 
W.  H.  Pringle,  London  University. 
British  Labor's  War  Message  to  American  Labor.    Addresses  and 
discussions  at  a  meeting  of  the  committee  on  labor  of  the 
Council  of  National  Defense,  held  in  Washington,   D.   C, 
on  May  15,  1917.     Senate  Docurnent  No.  84,  Washington, 
1917. 
Productivity  of  Labor  after  the  War.     Barnard  Ellinger.     Leeds, 

England,  Inman  &  Sons,  191 7. 
Principles  of  Social  Reconstruction.     Bertrand  Russell.     London, 

Allen  &  Unwin,  1917. 
The  War  and  the  Nation.    A  study  in  constructive  politics.    Wil- 
liam Cecil  Dampier  Weatham.    London,  Jolin  Murray,  1917. 
Science  and  Industry.     Department  of   Scientific  and   Industrial 
Research.     A   series  of  papers  bearing   on   industrial   re- 
search.    No.  I,  Industrial  research  in  the  United  States  of 
America.    By  A.  P.  M.  Fleming,  M.  I.  E.  E.,  London,  1917. 
Democracy  after  the  War.    J.  A.  Hobson.    London,  George  Allen 

&  Unwin,  1917. 
The  Whitley  Report.     Ministry  of  Labor.     Industrial   Councils. 
Together  with  the  letter  of  the  Minister  of  Labor  explain- 
201 


202  BIBLIOGRAPHY 

ing  the  Government's  view  of  its  proposals.  Industrial  Re- 
ports No.  I,  1917. 
Economic  Effects  of  the  War  upon  Women  and  Children  in  Great 
Britain.  Irene  Osgood  Andrews  and  Margaret  A.  Hobbs. 
New  York,  Carnegie  Endowment  for  International  Peace, 
1918. 
U.  S.  Department  of  Labor,  Monthly  Labor  Review,  Oct.,  1917,  to 
1918. 

Bulletins  of  the  "Labor  as  affected  by  the  war"  series,  covering 
a  great  variety  of  subjects. 

No.  221.     Hours,   Fatigue,   and   Health   in   British   Munitions 
Factories. 

No.  222.     Welfare  Work  in  British  Munitions  Factories. 

No.  223.     Employment  of  Women  and  Juveniles  in  Great  Brit- 
ain During  the  War. 

No.  230.     Industrial  Efficiency  and  Fatigue  in  British  Muni- 
tions Factories. 

No.  237.     Industrial  Unrest  in  Great  Britain. 
British    Industrial    Experience    During    the    War,    2    vols.      65th 
Cong.,  1st  sess..  Doc.  114. 

Part  I.     Digest   of   Laws,   Rules,   and   Orders  Affecting  Em- 
ployers, Workmen,  and  Output,  Aug.,  1914,  to  May,  1917. 

Part  11.     Text  of  Laws,  Circulars,  Orders. 

Part.  III.     Manufacturing  Industries.     W.  Jett  Lauck. 

Part  IV.     Railroad  Transportation.    Leland  Olds. 

Part  V.     Coal  Mining.     W.  Jett  Lauck. 
After-War  Problems.    Edited  by  W.  H.  Dawson.     London,  Mac- 
millan  Co.,  1917. 

Particularly  chapters  on — 

The  State  and  Labor,  by  Prof.  J.  S.  Chapman. 

The  relations  between  capital  and  labor,  by  G.  H.  Roberts,  M. 
P.,  and  Sir  Benjamin  C.  Browne. 
A  National  System  of  Economics.     J.  Taylor  Peddie.     London, 

Hodder  &  Stoughton,  1916. 
Great  Britain  After  the  War.    Sidney  Webb  and  Arnold  Freeman. 

London,  George  Allen  &  Unwin,  1916. 
When   Peace   Comes:     The   Way   of   Industrial   Reconstruction. 

Sidney  Webb.     London,  The  Fabian  Society,  1916. 
Memorandum  on  the  Industrial  Situation  After  the  War.     Issued 
by   the    Garton    Foundation.      London,    Harrison   &    Sons, 
1916. 

A  compilation  of  the  opinions  of  manufacturers,  labor  lead- 
ers, and  economists. 


1 


BIBLIOGRAPHY  203 

Germany's  Economic  Position,  and  England's  Commercial  and  In- 
dustrial Policy  After  the  War.     G.  B.  Dibblee.     London, 

William  Heinemann,  1916. 
How  Germany  Does  Business.     Chapters  on  export  and  finance 

methods.     Dr.  Paul  Pensac  Gourvitch,     New  York,  B.  W. 

Huebsch,  1917. 
Eclipse  or  Empire.     Herbert  Branston  Gray  and  Samuel  Turner. 

London,  Nisbet  &  Co.,  Ltd.,  191 6. 
Peace    Problems    in    Economics    and    Finance.     Uriel    D'Acosta. 

London,  George  Routledge  &  Sons,  Ltd.,   1917. 
The  Trade  of  To-Morrow.    Ernest  J.  P.  Benn.     New  York,  E.  P. 

Button  &  Co.,  1918. 
Britain  After  the  Peace,  Revolution  or  Reconstruction.    Brougham 

Villiers.     New  York,  E.  P.  Button  &  Co.,  1918. 
Industrial  Reconstruction — A   Symposium  on  the  Situation  after 

the  War  and  How  to  Meet  it.     Edited  by  Huntley  Carter, 

New  York,  E.  P.  Button  &  Co.,  1918. 
Ruskin  College  Conferences.     Annually,  1915,  1916,  1917,  1918. 

I.  The  War  and  Democracy,  1915,  by  Wilson,  Zimmern,  and 

Greenwood. 

II.  Reorganization  of  Industry,  1916,  by  A.  C.  Pigou,  Arthur 
Greenwood,  Sidney  Webb,  and  A.  E.  Zimmern. 

III.  Some  Problems  of  Urban  and  Rural  Industry,   1917,  by 
G.  B.  H.  Cole  and  others. 

IV.  Some  Economic  Aspects  of  International  Relations,  1917, 
by  H.  S.  Furniss,  Edwin  Cannan,  and  A.  E.  Zimmern. 

V.  The  State  and  Industry  Buring  the  War  and  After,   1918, 
by  H.  S.  Furniss,  John  Hilton,  and  J.  J.  Mallon. 

The  Coming  Trade  War.  Thomas  Farrow  and  W.  Walker  Crotch. 
London,  Chapman  &  Hall,  Ltd.,  1916. 

Science  and  the  Nation.  Albert  Charles  Seward.  London,  Cam- 
bridge University  Press,  1917.  A  symposium  by  13  con- 
tributors. 

Elements  of  Reconstruction.  Anon.  The  Times.  London,  Nisbet 
&  Co.,  Ltd.,  1916. 

Economic  Problems  of  Peace  After  War.  William  Robert  Scott. 
London,  Cambridge  University  Press,  1917.  W.  Stanley 
Jevons's  lectures  at  University  College. 

Instincts  of  the  Herd  in  Peace  and  War.  F.  W.  Trotter.  London, 
Unwin,  1916. 

Guild  Principles  in  War  and  Peace.    S.  G.  Hobson.    London,  1917. 

Bemocracy  After  the  War.    J.  A.  Hobson,  London,  1917. 

Terms  of  Industrial  Peace.  Alex  Ramsay.  London,  Constable  & 
Co.,  1917. 


204  BIBLIOGRAPHY 

Credits,  Industry,  and  the  War,   1915. 
Labor,  Finance,  and  the  War,  1916. 
Industry  and  Finance,  1917. 

Three  annuals,  issued  by  the  section  of  Economic  Science  and 

Statistics  of  the  British  Association  for  the  Advancement 

of    Science,    edited    by   Adam    W.    Kirkaldy,    published   by 

Isaac  Pitman  &  Sons,  London. 
Restoration  of  Trade  Union  Conditions.     Sidney  Webb.    London, 

Nisbet  &  Co.,  1917. 
Industrial  Conditions  After  the  War.     The  Place  of  the  Labor 

Exchange.     Liverpool,  Fabian  Society,  1916. 
How   to    Pay   for   the   War.     Fabian   Society,   Fabian   Research 

Dept.,  1916. 
Economy  and  Finance  of  the  War.    Arthur  C.  Pigou.    Dent,  1916. 
Self-Government  in  Industry.    G.  D.  H.  Cole.    London,  Bell,  1917. 
The  Position  of  Women  After  the  War. 
The  Problem  of  Unemployment  After  the  War. 
The  Restoration  of  Trade  Union  Conditions  in  Cases  not  Cov- 
ered by  the  Munitions  Acts. 
The  Restoration  of  Trade  Union  Customs  After  the  War. 

By  Joint  Committee  on  Labor  Problems  After  the  War,  all 

published  by  Cooperative  Printing  Society,   London,   1917. 
The  World  of  Labor — A  Discussion  of  the  Present  and  Future 

Trade-Unionism.     G.  D.  H.  Cole.    3d  ed.     London,  G.  Bell 

&  Sons,  1917. 
Labor  Problems  After  the  War.     The  Labor  Party,  I  Victoria 

St.,  S.W.  I.     London,  1917. 
Old   Worlds    for    New — A    Study   of   the    Post-Industrial    State. 

Arthur  J.  Penty.    London,  George  Allen  &  Unwin,  1917. 
Women  in  the  Engineering  Trades.     A  problem,  a  solution,  and 

some  criticisms ;  being  a  report  based  on  an  inquiry  by  a 

joint  committee  of  the  Fabian  Research  Department  and  the 

Fabian  Women's  Group.    Barbara  Drake.    London,  George 

Allen  &  Unwin,  1917. 
War-Time   Control    of   Industry.     The   Experience   of   England. 

Howard  L.  Gray.    New  York,  Macmillan  Co.,  1918. 
Industrial  Fatigue  and  the  Relation  between  Hours  of  Work  and 

Output,   with   a  Memorandum   on   Sickness.     Lord  Henry 

Bentinck.     London,  P.  S.  King  &  Son,  1918. 
Labor  and  Capital  After  the  War.     By  various  writers.    With  an 

introduction  by  the  Rt.  Hon.  J.  H.  Whitley,  M.  P.     S.  J. 

Chapman,  ed.     London,  John  Murray,  1918. 
The  Aims  of  Labor,    Arthur  Henderson.    London,  Headley  Bros., 

1918. 


BIBLIOGRAPHY  205 

National  Guilds — An  Inquiry  into  the  Wage  System  and  a  Way 

Out.    S.  G.  Hobson,  edited  by  A,  R.  Orage.  2d  ed.   London, 

G.  Bell  &  Sons,  1917. 
Trade    Parliaments.    Why    they    should    be    formed    and    how 

to  form  one  in  your  trade.     An  explanation  of  the  Whit- 
ley Report.     Industrial   Reconstruction   Council.     London, 

1918. 
Cooperation  or  Chaos.    A  handbook,  written  at  the  request  of  the 

War  and  Social  Order  Committee  of  the  Society  of  Friends. 

Maurice  L.  Rowntree.  London,  Headley  Bros.,  1918. 
The  Political  Economy  of  War.  F.  W.  Hirst.  Dent,  191 5. 
Problems  of  Reconstruction,  A  Symposium  edited  by  the  Earl  of 

Crewe.     London,  T.  Fisher  Unwin,  191 8. 
Problems  of  the   Peace.     C.   H.   Dawson.     London,    1918;   New 

York,  Scribner  &  Sons. 
Lessons  of  the  World  War.    Augustus  Hamon.    London,  T.  Fisher 

Unwin,  1918. 
A  Memorandum  on  Industrial  Self-Government,  together  with  a 

draft  scheme  of  a  builder's  national  industrial  parliament. 

Malcolm  Sparkes.     London,  1917. 
Trade  Parliaments  and  Their  Work.    Ernest  J.  P.  Benn.    London, 

Nisbet  &  Co.,  1918. 
The  Perils  of  Demobilization.     Reginald  Arthur  Bray.     London, 

1917. 
Industrial  Reconstruction.    C.  Ernest  Fayle.     London,  W.  Clowes 

&  Sons,  1918. 
The   Hope    for   Society,    a   symposium   on   social   reconstruction, 

edited  by   Lucy  Gardner,   with   many  notable  contributors. 

London,  G.  Bell  &  Sons,  1917. 
A  Levy  on  Capital.     F.  W.  Pethick  Lawrence.     London,  G.  Allen 

&  Unwin,    1918. 
Capital,  War,  and  Wages.     W.  H.  Mallock.     London,  Blackie  & 

Sons,    1918. 
Summary  of   Soldier  Settlements   in   English-speaking  Countries. 

Elwood  Mead.     Washington,   Government   Printing   Office, 

1918. 
Mobilizing  Woman  Power.    With  a  foreword  by  Theodore  Roose- 
velt.    Harriot  Stanton  Blatch.     New  York,  The  Women's 

Press,  1918. 
The  Meaning  of  Industrial   Freedom.     G.   D.   H.   Cole   and  W. 

Mellon    London.    Geo.  Allen  and  Unwin,  Ltd. 
Industrial  Reconstruction.     Reprinted  by  special  permission  from 

the   Quarterly  Review,   October,    igi6.     C.    Ernest    Fayle. 

London  and  Beccles,  William  Clowes  and  Sons,  Ltd. 


2o6  BIBLIOGRAPHY 

Women  in  Industry  after  the  War.  Social  Reconstruction  Pam- 
phlets, No.  III.  B.  L.  Hutchins.  London,  The  Athenaeum 
Literature  Dept.,   1918. 

The  Human  Needs  of  Labor.  B.  Seebohm  Rowntree.  London, 
Edinburgh,  and  New  York.    Thomas  Nelson  &  Sons,  1918. 

II.   FRANCE 

La   Cite   de  Demain   dans  les   Regions  Devastees.     Auburtin  et 
Blanchard,  Paris.     Armand  Colin,   Paris,   1917.     Covering 
plans  of  two  architects. 
Organizons-Nous.     Lucien  Deslinieres  et  A.  Fastout.     Paris,  M. 

Giard  et  E.  Briere,  1917.    A  socialist  presentation. 
Agir.     Edouard  Herriot.     Paris,  Payot  et  Cie.,  1917. 

The  third  section  of  this  work,  entitled  "L'Apres  Guerre,"  is 
particularly  significant,  as  the  titles  of  the  chapters  indi- 
cate. 
Let  us  prepare  for  after  the  war. 
France  must  be  developed. 
German  commercial  methods. 
Alodern  management  methods. 
Foreign  trade  and  the  banks. 
An  economic  entente. 
Competition  of  German  chemicals. 
Vocational  education. 
Vers  la  Democratic  Nouvelle.     Lysis.    Paris,  Payot  et  Cie.,  1917. 
Pour  Renaitre.    Lysis  (pseud.  Eugene  le  Tailleur).    Paris,  Payot 

et  Cie.,  1917.    An  inspirational  appeal  to  France. 
La  Bataille  ficonomique  de  Demain.     Victor  Boret.     Paris,  Payot 
et  Cie.,  1917.    Dealing  with  industry,  commerce,  and  finance 
in  France  during  the  war  and  after  it. 
Notre  Avenir.     Victor  Cambon.     Paris,  Payot  et  Cie.,  1917. 
Apres  la  Guerre,  Pour  Remettre  de  I'Ordre  dans  la  Maison.    Biard 

d'Aunet.     Paris,   Payot  et   Cie.,   1917. 
L'Effort  de  Demain.     Henri  Urban.     Paris,  Perrin  et  Cie.,   1917. 
Le  Systeme  Taylor  et  la  Physiologie  du  Travail  Professionnel.    J. 

M.  Lahy.    Paris,  1916. 
Problemes     ficonomiques    d'Apres     Guerre.      Revue    des    Deux 
Mondes,  Paris,  1918: 
July  I,  L'Organization  Industrielle. 
Aug.  I,  L'Arme  ficonomique. 
Sept.   15,   Les  Transports. 
La  Nouvelle  Revue,   Paris,   1917,  a  series  of  twelve  articles  on 
after-war  problems  by  Maurice  Alfassa,  running  from  July 


BIBLIOGRAPHY  207 

15,  1917  to  Jan.  6,  1918,  entitled  "Le  Preparation  de  I'Apres 

Guerre." 
Problemes  ficonomiques  nes  de  la  Guerre.    Andre  Lebon.     Paris, 

Payot  et  Cie.,  1918. 
Notre  France  d'Apres-Guerre.     Comment  Reorganiser  la  France. 

Comment   Developper   Ses  Forces   Productives.      Solutions 

Pratiques.     Andre  Macaigne.     Paris,  Pierre  Roger  et  Cie., 

La  Reparation  des  Dommages  de  Guerre.  Conferences  faites  a 
I'ficole  des  hautes  etudes  sociales  (novembre  1915  a  Janvier 
1916).     Paris,  Librairie  Felix  Alcan.   1917. 

La  Guerre  et  La  Vie  de  Demain.  Conferences  de  I'alliance 
d'hygiene  sociale.  1914-1916.  Vols.  I,  II.  Paris,  Felix 
Alcan,  1917. 

La  Production  Industrielle  Intensive;  son  Influence  sur  le  Prix 
de  Revient.     D.  de  Fleury.     Paris,  H.  Dunod  et  E.  Pinat, 

1917- 

Le  Socialisme  contre  I'fitat.  Problemes  d'Apres-Guerre.  fimile 
Vandervelde.     Paris,  Berger-Levrault,  1918. 

Pour  la  Repopulation  et  Contre  la  Vie  Chere.  Alfred  Krug. 
Paris,  Berger-Levrault,  1918.  Devoted  to  depopulation  and 
repopulation  and  the  subject  of  the  land,  including  a  study 
of  agricultural  instruction  in  France  and  Germany,  agricul- 
tural industries,  hand  v^^ork  and  machine  work  in  agricul- 
ture, the  cooperation  of  agriculture  and  industry,  and  re- 
lated matters. 

La  Lutte  Contre  le  Chomage  Avant,  Pendant  et  Apres  la  Guerre. 
Antoine  Borrel.     Paris,  Dunod  et  Pinat,  1917. 

La  Renaissance  Industrielle  en  France  et  les  Lois  sur  les  Societes. 
E.  Duplessix.    Paris,  Rousseau  et  Cie.,  1917. 

American  Industrial  Commission  to  France.  Report  to  the  Amer- 
ican Manufacturers  Export  Association.  New^  York,  Red- 
field-Kendrick-Odell    Co.,    Inc.,    1917. 

Comment  Payer  les  Frais  de  la  Guerre?  Daniel  Bellet.  Paris, 
Recueil  Sirey,  1915. 

Le  Commerce  Allemand,  Apparences  et  Realites.  Daniel  Bellet. 
Paris,  Plon-Nourrit,   1916. 

L'Expansion  du  Commerce  Exterieur  et  I'Organisation  Bancaire. 
Paris,  Berrogain,  Bancaire,  1916. 

Les  Methodes  Allemandes  d'Expansion  ficonomique.  Hauser. 
Paris,  Armand  Colin,  1916. 

Finances  de  Guerre  Comparees.  A.  Huart.  Paris,  Giard  et 
Briere,  1916. 


2o8  BIBLIOGRAPHY 

L'Organisation  du   Credit   en  Allemagne  et   en  France.     Liesse, 

Pages  d'Histoire,  No.  58.     Paris,  Berger-Levrault. 
La  Caste  Dominante  Allemande.    Millioud.    Paris,  Recueil  Sirey, 

1915- 
Le    Developpement    ficonomique    de   rAllemagne    Contemporaine. 

A.   Pingaud.     Pages  d'Histoire,   No.    106.     Paris,   Berger- 
Levrault. 
Preparation  et  Conduite  Financiere  de  la  Guerre.    Riesser.    Paris, 

Payot  et  Cie.,  1916. 
I^  Femme  Francaise ;  Son  activite  pendant  la  Guerre.    Marie  de 

la  Hire.     Paris,  Librairie  Jules  Tallandier,  1917. 
La    Science    du    travail    et    son    Organization.      Josefa    loteyko. 

Paris,  Librairie  Felix  Alcan,   1917. 
La  Question  du  Travail  des  Femmes;  ses  perspectives  nouvelles. 

Henri  Joly.     Paris,  H.  Dunod  and  E.  Pinat,  1917. 
La  Nouvelle  Cite  de  France.     Reorganization  naticnale  d'apres 

Guerre.     Henri  Mazel.     Paris,  Librairie  Felix  Alcan,  1917. 
La  Vitalite  ficonomique  de  la  France  Avant  et  Apres  la  Guerre. 

Conference  papers,  Bordeaux.    Paris,  F.  Alcan,  1918. 

III.      GERMANY 

Owing  to  the  unfortunate  censorship  on  German  books  during 
the  war,  we  are  in  ignorance  of  much  that  economists  and  labor 
leaders  had  planned.  The  author's  sources  of  information  are 
the  magazines  and  newspapers,  referred  to  in  the  text. 


INDEX 


Abrasives  and  Polishing  Powders, 
Research  Committee  (Eng.),  192 

Addison,  Dr.  Christopher,  2^ 

Advisory  Commission  for  Economic 
Information  Abroad  (Holland),  10; 
Housing  Panel  (Eng.),  iq6 

Adult  Education  Committee  (Eng.), 
197 

Aerial  Transport  Committee,  Civil 
(Eng.),  200 

After  War  Needs,  Complete  Schemes 
Covering  (Eng.),  117;  Problems, 
Need  for  Stud}^  of  (Fr.),  27 

Agriculture  and  Forestry  (Eng.),  195 

Aid  for  Soldiers  and  Their  Depen- 
dents (Ger.),  74 

Aliens,  Committee  on  (Eng.),  198 

Alliance,  Difficulties  of  an  Economic, 
34 

Amalgamated  Society  of  Engineers 
(Eng.),  113 

Appeal  to  the  Nation,  An  (Fr.),  27 

Appendi.x  to  Report  on  Joint  Standing 
Industrial  Councils  (Eng.),  149 

Arbitration  Offices  (Ger.),  64;  Report 
on  Conciliation  and,  August,  1918 
(Eng.),  160 

Assuring  of  Decent  Wages  (Eng.),  121 

Austria,  Reconstruction  in,  10; 
Demobilization  in,  49 

Auxiliary  Service,  Discharge  of  Per- 
sons in  (Ger.),  70 

Avenues  of  Approach,  The  (Eng.),  123 

B 

Banking  (Fr.),  35;  Facilities  (Fr.),  37 
Belgian  Trade  Committee  (Eng.),  186 
Belgium,  Reconstruction  in,  8 
Board  of  Trade  Committees  on  the 
Coal,  Electrical,  Engineering,  Iron 
and  Steel,   Nonferrous  Metal   and 
Textile  Trades  and  on  Shipbuilding 
Industries  (Eng.),   188 
Brazil,  Reconstruction  in,  13 


Briand,  M.,  37 

British  Board  of  Trade,  4;  Labor 
Party,  Social  Reconstruction  Pro- 
gram of  the,  164;  Problem  from 
Within,  The,  23;  Subcommittees  on 
Reconstruction,  List  of,  185 

Building  Materials,  Committee  on 
the  Supply  of  (Eng.),  189;  Research 
Committee  (Eng.),   192 

Bulgaria,  Reconstruction  in,  10 


Canada,  Reconstruction  in,  5 

Canadian  Industrial  Organization 
Association,  5 

Capital  After  the  War,  Condition  of 
(Eng.),  94 

Care  of  Juveniles  (Ger.),  64;  of  the 
Unemployed,  Employment  Ex- 
changes and  (Ger.),  64 

Cements  for  Lenses  and  Prisms, 
Committee  for  Research  on  Vitreous 
Compounds  and  (Eng.),  192 

Central  Committee  on  Materials, 
Supply  (Eng.),  188 

Chamberlin,  Mr.  Nevill,  123 

Chambers  of  Labor  (Ger.),  52;  Pre- 
vious Attempts  to  Establish  (Ger.), 
53;  Bill  (Ger.),  54;  Bill,  Provisions 
of  (Ger.),  54-57 

Chapman,  Prof.  S.  J.,  124 

Chemistry  of  Lubricants  Sub-com- 
mittee (Eng.),  193 

Children  and  Juveniles,  Protection 
of  (Ger.),  62 

Chile,  Reconstruction  in,  12 

Civil  Aerial  Transport  Committee 
(Eng.),  200 

Civilian  War  Workers,  Demobiliza- 
tion of  (Eng.),  108 

Civil  War  Workers'  Committee 
(Eng.),  194 

Civilization,  The  End  of  a  (Eng.),  165 

Coal  (see  Board  of  Trade  Com- 
mittees); Conservation  Committee 
(Eng.),  190 


209 


2IO 


INDEX 


Cold  Storage  Research  Board  (Eng.), 

Colombia,  Reconstruction  in,  13 

Comment  of  the  Minister  of  Labor  on 
Joint  Standing  Industrial  Councils 
(Eng.),  151 

Commercial  and  Industrial  Policy 
Committee  (Eng.),  185;  Policy 
(Ger.),  85 

Committee,  Shop  Stewards  (Eng.), 
138;  Welfare  (Eng.),  139;  for  Re- 
search on  Vitreous  Compounds  and 
Cements  for  Lenses  and  Prisms 
(Eng.),  192;  of  Commerce  and 
Industry  (Ger.),  47;  of  Inquiry  into 
Industrial  Unrest,  Report  of  (Eng.), 
140;  on  Acquisition  of  Land  for 
Public  Purposes  (Eng.),  195;  on 
Building  By-Laws  (Eng.),  197;  on 
Chemical  Trades  (Eng.),  187;  on 
Coal  Conservation  (Eng.),  190; 
on  Colonial  Blue  Books  (Eng.), 
191;  on  Cotton  Growing  Within  the 
Empire  (Eng.),  189;  on  Edible  and 
Oil-Producing  Nuts  and  Seeds 
(Eng.),  190;  on  Indian  Cotton 
(Eng.),  189;  on  Juvenile  Education 
in  Relation  to  Employment  After 
the  War  (Eng.),  197;  on  Nitrogen 
Products  (Eng.),  190;  on  Pre-War 
Contracts  (Eng.),  199;  on  Principles 
of  Arrangements  Determining  Sal- 
aries of  Teachers  in  Elementary 
Schools  (Eng.),  198;  on  Principles 
of  Arrangements  Determining  Sal- 
aries of  Teachers  in  Secondary, 
Technical,  etc..  Schools  (Eng.),  198; 
on  Relations  Between  Employer 
and  Employed  (Eng.),  194;  on 
Road  Locomotives  and  Heavy 
Motor  Cars  (Eng.),  196;  on  the 
Interpretation  of  the  Term  "Period 
of  the  War"  (Eng.),  199;  on  the 
Supply  of  Building  Materials 
(Eng.),  189;  on  the  Teaching  of 
Modern  Languages  (Eng.),  197; 
on  the  Teaching  of  Science  (Eng.), 
198 

Committees  on  Demobilization 
(Eng.),  106 

Complete  Schemes  Covering  After- 
War  Needs  (Eng.),  117 

Concessions  to  Trade  Unions  (Eng.), 
112 

Conciliation  and  Arbitration,  Report 
on  (Eng.),  160 


Condition  of  Capital  After  the  War 
(Eng.),  94;  of  Labor  After  the  War 
(Eng.),  93 

Constitution  for  Factory  and  Industry, 
A  (Eng.),  136 

Constructive  Policies  (Ger.),  52 

Contract,  The  New  Social  (Eng.),  126 

Control  of  Capitalist  Industry  (Eng.), 
177 

Copper   (see  Zinc) 

Cotton  Growing  Within  the  Empire, 
Committee  on  (Eng.),  189;  In- 
dustry (see  Provisional  Committee) 


D 


Daily  Working  Hours  (Ger.),  61 
Dangers    of    a    Sham    Restoration 

(Eng.),  IIS 
Decline  in  Power  (Eng.),  21 
Definitions,  Labor  (Eng.),  126 
Demands  for  the  Transition  to  Peace 

Economy  (Ger.),  84 
Democratic    Control    of    Industries 

(Eng.),  173 
Demobilization  and  Disposal  of  Stores 
(Eng.),  193;  Committees  on  (Eng.), 
106;  Co-ordination  Committee 
(Eng.),  194;  in  Austria,  49;  in 
England,  25;  in  Germany,  16,  43, 
44;  of  Army  Committee  (Eng.),  193; 
of  Civilian  War  Workers  (Eng.), 
108;  of  Material  (Aus.),  51;  of 
Soldiers,  Munition  Workers,  Women 
and  Juveniles  (Eng.),  104;  of  War 
Materials  (Eng.),  iii;  of  Women 
(Eng.),  109;  of  Youths  (Eng.),  no; 
Mechanics  of  (Eng.),  106;  Ministry 
of  Munitions  Committee  on  Recon- 
struction and  (Eng.),  200;  Plans  of 
Austria  and  Germany  Compared, 
52;  Principles  of  (Eng.),  104;  Proce- 
dure in  (Eng.),  107;  Proposals, 
Official  (Aus.),  so;  The  Organization 
of  (Eng.),  168 
Dentists  Act  Committee  (Eng.),  196 
Department    of    Industrial    Supply 

(Norway),  11 
Development  of  Trade  (Eng.),  185 
Difficulties,     Dangers     and     Oppor- 
tunities of  Restoration  (Eng.),  114 
Directorate  General  of  Industry  and 

Commerce  (Spain),  11 
Disabled    Officers,    Employment    of, 
Committee  (Eng.),  193 


INDEX 


211 


Discharge  of  Soldiers  and  Persons  in 

the  Auxiliary  Service  (Ger.).  70 
Disposal    of    War    Stores    Advisory 

Board  (Eng.),  194 
Distinctions,  Some  Labor  (Eng.),  127 
Domestic    vs.    Foreign    Investments 

(Fr.),  35 
Dominions  Royal  Commission  (Eng.), 

186 

E 

Economic  Alliance,  Difficulties  of  an, 
34;  Boycott,  The,  34;  Commission 
of  Japan,  6;  Council  (Belgium),  8; 
Measures,  General  (Ger.),  66;  Policy 
(Ger.),  75 

Education  (Eng.),  197 

Educational  System  (Ger.),  88 

Efficiency  and  Thrift  (Ger.),  18 

Effects  of  the  War  (Eng.),  96;  (Ger.), 
40 

Electrical  Research  Committee 
(Eng.),  192;  Trade  (see  Board  of 
Trade  Committees) 

Emergency  Legislation  Committee, 
War  Office  (Eng.),  199;  Measures 
(Eng.),  104;  Measures  of  Demobil- 
ization (Ger.),  43 

Empire  Settlement  Committee  (Eng.), 
200 

Employers  and  Employed,  Relations 
Between  (Eng.),  130,  194 

Employment  Committee,  Disabled 
Officers  (Eng.),  193;  Exchanges  and 
Care  of  the  Unemployed  (Ger.),  44, 
64;  for  All,  Securing  (Eng.),  169; 
Labor  and  (Eng.),  194;  Offices 
(Ger.),  69 

End  of  a  Civilization,  The  (Eng.),  165 

Enemy  Debts  Committee  (Eng.),  188 

Engineering  (See  Standing  Commit- 
tee); Trade  (see  Board  of  Trade 
Committees) ;  Trades  Committee 
(Eng.),  187 

England,  Decline  in  Power  in,  21; 
Demobilization,  in,  25;  Facilities 
for  Foreign  Trade  in,  26;  General 
Problems  of  Reconstruction  in,  21; 
Labor  Problem  in,  89;  Raw  Material 
Supply  in,  25;  Recovery  of  Trade 
Prestige  in,  26;  Technical  Research 
in,  25 

Exodus  from  War  Industries  (Eng.), 
120 

Ex-Soldiers,  Measures  in  Behalf  of 
(Ger.),  6s 


Factory  and  Industry,  A  Constitution 
for  (Eng.),  136 

Female  Workers,  Protection  of  (Ger.), 
61 

Final  Report  of  the  W^hitley  Commit- 
tee (Eng.),  159 

Finance  (Eng.),  188;  and  Taxation 
.(Ger.),  87 

Financial  Liabilities  Committee 
(Eng.),  188;  PoHcy  (Ger.),  77;  Re- 
form, Taxation  and  (Ger.),  86;  Sit- 
uation in  Germany,  19 

Finding  Jobs  (Eng.),   119 

Fiscal  Policy  of  a  Social  Democracy 
(Ger.),  83 

Five  Points  of  the  New  Charter 
(Eng.),  136 

Food  Research  Committee  (Eng.), 
192;  Supply  (Ger.),  68 

Foreign  Investments,  Domestic  vs. 
(Fr.),  35 ;  Trade,  Financial  Facilities 
for  (Eng.),  26;  Trade  (Fr.),  33 

Forestry,  Agriculture  and  (Eng.),  195; 
Committee,  195 

Four  Principles  to  Guide  the  Attempt 
to  Solve  the  Industrial  Problem 
(Eng.),  131 

France,  Banking  in,  35,  37;  Foreign 
Trade  of,  33;  General  Problems  of 
Reconstruction  in,  26;  Industrial 
Organization  in,  30;  Labor  Problems 
in,  30;  Man  Power  and  Population 
in,  29;  Public  Finance  in,  37;  Recon- 
struction in,  i;  Rehabilitation  in, 
29;  Resources  of,  31;  Scientific 
Management  in,  32;  State  Control 

in.  39 
Friction,  Industrial  (Eng.),  121 
Fuel  Research  Board  (Eng.),  191 
Future,  Problems  of  the  (Eng.),  118 


Carton  Foundation,  Memorandum  of 
the  (Eng.),  119;  Report  of  the 
(Eng.),  130 

Geological  Subcommittee  (Eng.),  191 

George,  Mr.  Lloyd,  112 

German  and  Austrian  Demobilization 
Plans,  Comparison  of,  52;  Chambers 
of  Labor,  52;  Constructive  Policies, 
52;   Social  Democratic  Party,  75,  83 

Germany,  Demobilization  in,  16,  43; 
EiTects  of  the  War  in,  40;  Employ- 
ment   Exchanges   in,    44;    General 


212 


INDEX 


Reconstruction  in,  15;  OflBcial  Views 
of  Reconstruction  in,  16;  Public 
Debt  in,  21;  Public  Works  and  Con- 
tracts in,  45;  State  Control  in,  21; 
The  Financial  Situation  in,i9;Raw 
Materials  in,  17;  Reconstruction  in, 
2;  Tonnage  of,  18;  Trade  Policies 
in,  19;  Women  in  Industry'  in,  41 

Glass  and  Optical  Instruments  {see 
Standing  Committees) 

Gossling,  Mr.,  123 

Great  Britain,  Reconstruction  in,  4 

Greece,  Reconstruction  in,  9 

H 

Holland,  Reconstruction  in,  10 

Home  Workers'  Act.  (Ger.),  53;  Pro- 
tection of  (Ger.),  62 

Horse  Breeding  Committee  (Eng.), 
195;  Demobilization  Committee 
(Eng.),  194 

Housing  (Eng.),  124,  196;  Committee 
(Eng.),  197;  (Ger.),  65,  74;  Local 
Government  Board  Conference  on 
(Eng.),  196 

Hygiene  (Municipal),  (Ger.),  88 


Illuminating    Engineering,    Standing 

Committees  on  (Eng.),  191 
Immediate     After     War     Situation 
(Eng.),  117;  Nationalization  (Eng.), 
174;  Programs  of  Liberals  (Eng.), 
129 
Imperial    Commission   for   Economic 
Transition   (Ger.),    2;   Ministry  of 
Economics    (Ger.),    3;    Office    for 
Social  Legislation  (Ger.),  65 
Imports,  Restriction  of  (Ger.),  18 
Indemnities,  No  War  (Ger.),  78 
India,  Interdepartmental  Conference 

on  Missions  in  (Eng.),  199 
Indian  Cotton  Committee  (Eng.),  189 
Industrial  Changes  (Eng.),  114;  Con- 
scription (Ger.),  40;  Councils, 
Works  Committees  and  (Eng.),  131; 
Councils,  The  Need  for  (Eng.),  141; 
Councils  and  the  Government 
(Eng.),  142;  Councils,  Report  on 
Joint  Standing  Committee  on 
(Eng.),  143;  Appendix  to  Report, 
149;  Comment  of  Minister  of  Labor 
on,  151;  Second  Report,  156; 
Development  Commission  (Eng.), 
186;   Friction   (Eng.),    121;   Policy 


Committee,  Commercial  and  (Eng.), 
185;  Problems,  Four  Principles  to 
Guide  the  Attempt  to  Solve  the 
(Eng.),  131;  Reorganization  (Fr.), 
30;  Research,  Scientific  and  (Eng.), 
191;  Situation  To-day,  The  (Eng.), 
90;  Unrest  (Eng.),  102;  Unrest, 
Methods   of   dealing   with    (Eng.), 

133 

Industries,  The  Democratic  Control 
of  (Eng.),  173 

Industry,  A  Constitution  for  Factory 
and  (Eng.),  136;  After  the  War, 
Women  in  (Eng.),  116;  Control  of 
Capitalist  (Eng.),  177;  In  Germany, 
Women  in,  41;  Transformation  of 
(Eng.),  114 

Inheritance  Tax  (Ger.),  81 

Insurance,  Workmen's  (Ger.),  62 

Intelligence  (Eng.),  191 

Interdepartmental  Conference  on  Mis- 
sions in  India  (Eng.),  199 

International  Measures  (Ger.),  59 

Irish  Peat  Inquiry  Committee  (Eng.), 

193 
Iron  and  Steel  Industries   {see  Board 

of  Trade  Committees) 
Italy,  Reconstruction  in,  5 


Japan,  Reconstruction  in,  6 

Joint  Standing  Committee  on  Illu- 
minating Engineering  (Eng.),  191 

Joint  Standing  Councils  Established 
(Eng.),  159  {see  also  Report) 

Juveniles,  Care  of  (Ger.),  64;  Demobil- 
ization*of  (Eng.),  104;  Education 
{See  Committee  on);  Organizations 
Committee  (Eng.),  198 


Labor  After  the  War,  Condition  of 
(Eng.),  93;  and  Capital,  Policies  of 
(Eng.),  94;  and  Employment(Eng.), 
194;  and  the  New  Social  Order 
(Eng.),  165;  Capital  and  the  State, 
Relations  of  (Eng.),  92;  Definitions, 
Some  (Eng.),  126;  Distinctions, 
Some  (Eng.),  127;  Efficiency  (Eng.), 
99;  International  Measures  for 
(Ger.),  59;  Law,  Reform  of  (Ger.), 
63;  Legislation  in  Germany,  61; 
Market  After  the  War,  Securing  the 
(Ger.),  84;  Organization  (Ger.),  58; 
Policies,  Long  Range  (Eng.),  121; 


INDEX 


213 


Political  Demands  of   (Ger.),    59; 

Problem  in  England,  89;  Problems 

in  France,  30 
Labor,     Protection    of     (Ger.),     60; 

Rights  of  (Ger.),  58;  Supply  (Eng.), 

96;  Welfare,  Studies  in  (Eng.),  loi 
Labor's  Programs  of  Reconstruction 

(Ger.),  60 
Land  Settlement  Committee  (Eng.), 

195 
Legal  Questions  (Eng.),  199 
Legislation,  Protective  (Ger.),  59,  72; 

International  (Ger.),  59 
Levy  on  Property  (Ger.),  79 
Liberals,     Immediate    Programs    of 

(Eng.),  129 
List  of  British  Subcommittees,  185 
Liverpool  Fabian  Society,  117 
Local  Government  Board  Conference 

on  Housing  (Eng.),  196;  Committee 

(Eng.),  195 
Long  Range  Labor  Policies  (Eng.),  121 
Lord  Parker  of  Waddington,  4 
Lubricants  and  Lubrication  Inquiry 

Committee  (Eng.),  192 

M 

Machinery  of  Government  Committee 
(Eng.),  19s 

Maintenance  of  the  Standard  Rates, 
The  (Eng.),  136 

Man  Power  and  Population  (Fr.),  29 

Measures  Already  Provided  for, 
Remedial  (Eng.),  118;  Emergency 
(Eng.),  104;  General  Economic 
(Ger.),  66;  on  Behalf  of  Ex-Soldiers 
(Ger.),  65;  Recommended,  Preven- 
tive (Eng.),  118 

Mechanics  of  Demobilization  (Eng.), 
106 

Metallurgy  (see  Standing  Com- 
mittees) 

Methods  of  Dealing  with  Industrial 
Unrest  (Eng.),  133 

Methods  of  the  Radicals,  The  (Eng.), 
128 

Milner,  Lord,  123 

Mine  Rescue  Apparatus  Research 
Committee  (Eng.),  192 

Mining,  Power  Generation  and  Trans- 
mission, Carbonization  and  Geo- 
logical Subcommittees  (Eng.),   191 

Minister  of  Labor,  Comment  of 
(Eng.),  151  (see  Industrial  Coun- 
cils); for  Transition  Economy 
(Aus.),  10 


Ministry  of  Commerce  (Serbia),  9; 
of  Economic  Affairs  (Belgium),  8; 
of  Economic  Reorganization  (Italy), 
5;  of  Labor  on  Joint  Standing 
Councils  (Eng.),  141;  of  Munitions 
Committee  on  Reconstruction  and 
Demobilization  (Eng.),  200;  of 
Public  Works  (Fr.),  2;  of  Recon- 
struction (Eng.),  4 
Monopolies  (Ger.),  82;  Prevention  of, 

85 
Monopoly,  Trade  and  Tariff  Questions 

(Ger.),  77 
Municipal  Policy  (Ger.),  87 
Municipalization  (Eng.),  177 
Munition  Workers,  Demobilization  of 
(Eng.),  104 

N 

National  Civilian  Service  Act  (Ger.), 
53;  Finance,  A  Revolution  in 
(Eng.),  178;  Minimum,  Universal 
Enforcement  of  a  (Eng.),  167; 
Registration  Committee  (Eng.), 
196;  Service  (Eng.),  100 

Nationalization,    Immediate    (Eng.), 

174 

Nature  of  Suspended  Rights  of  Labor 
(Eng.),  Ill 

Need  for  Industrial  Councils  (Eng.), 
141;  for  Study  of  After  War  Prob- 
lems (Fr.),  27 

New  Charter,  Five  Points  of  the 
(Eng.),  136;  Industries  Committee, 
(Engineering  Trades)  (Eng.),  187; 
Principle,  The  (Eng.),  126;  Social 
Contract,  The  (Eng.),  126;  Social 
Order,  Labor  and  the  (Eng.),  165 

Night  Work  (Ger.),  61 

Nitrogen  Products  Committee  (Eng.), 
190 

Nonferrous  Metal  Trades  (see  Board 
of  Trade  Committees) 

O 

Officers  Resettlement  Subcommittee 
(Eng.),  193 

Official  Demobilization  Proposals 
(Aus.),  50;  Policy  (Ger.),  47;  Views 
of  Reconstruction  in  Germany,  16 

Opposition  to  Reconstruction  Dis- 
cussions, 13 

Organization  of  Demobilization 
(Eng.),  168 

Output,  Removal  of  Restrictions  on 
(Eng.),  112 


214 


INDEX 


Parker  of  Waddington,  Lord,  104 
Peace   Economy,    Demands   for   the 

Transition  to  (Ger.),  84 

"Period  of  the  War,"  Committee  on 

the    Interpretation    of    the    Term 

(Eng.),  199 

Pillars  of  the  House,  The  (Eng.),  166 

Pledges    to    Restore    Trade    Union 

Conditions  (Eng.),  113 
Policies  of  Labor  and  Capital,  The 

(Eng.),  94;  Radical  (Eng.),  125 
Political  Demands  of  Labor  (Ger.),  59; 

Solutions  (Eng.),  125 
Poor  Law  (Ger.),  64 
Power  Generation  and  Transmission 

Subcommittee  (Eng.),  191 
Prevention  of  Monopolies  (Ger.),  85; 
of  Strikes   (Eng.),   112;  of  Unem- 
plo>Tnent  (Eng.),  136 
Preventive  Measures  Recommended 

(Eng.),  118 
Pre-War  Situation,  The  (Eng.),  89 
Principle  of  Taxation,  A  (Ger.),  78; 

The  New  (Eng.),  126 
Problems  of  the  Future,  The  (Eng.), 

118 
Procedure  in  Demobilization  (Eng.), 

107 
Property,  Lew  on  (Ger.),  79 
Protection  of  Children  and  Juveniles 
(Ger.) ,  62 ;  of  Female  Workers  (Ger.), 
61;  of  Home  Workers  (Ger.),  62;  of 
Labor  (Ger.),  60 
Protective  Legislation  (Ger.),  59,  72 
Provisional    Committee   for   the   In- 
ternal Combustion  Engine  Industry 
(Eng.),     193;     on     Research     and 
Education  for  the  Cotton  Industry 

(Eng.),  193  .         .        ,^      s 
Public   Admimstration    (Eng.),    195; 
Debt  (Ger.),  21;  Health  (Ger.),  63; 
Finance  (Fr.),  37;  Works  and  Con- 
tracts (Ger.),  45 

R 

Reconstruction,  Ministry  of  Muni- 
tions Committee  on  Demobilization 
and  (Eng.),  200 

Radical,  Methods  of  the  (Eng.),  128 

Radical  Policies  (Eng.),  125 

Radical  Views  (Eng.),  94 

Raw  Materials  (Eng.),  188;  German 
Supply  ^of,  17 


Recommendations  of   Committee  of 
Inquiry     into     Industrial     Unrest 
(Eng.),  140 
Reconstruction    in    Austria,    10;    m 
Belgium,  8;  in  Brazil,  13;  in  Bul- 
garia, 10;  in  Canada,  5;  in  Chile, 
12;  in  Colombia,  13;  Commissions 
in  Foreign  Countries,  i ;  Discussion, 
Opposition    to,  13;    in    France,  i; 
General  Aspects  of,  26;  in  Germany, 
2,  15;  in  Germany,  Official  Views, 
16;   Abroad,   Problems  of,    14;  in 
Great  Britain,  4;  in  Greece,  9;  in 
Holland,  10;  in  Italy,  s;  in  Japan, 
6;  Labor's  Programs  of  (Ger.),  60; 
Program  of  German  Trade  Unions, 
66;  in  Russia,  6;  in  Scandinavian 
Countries,  11;  in  Spain,  11 
Reconstruction    Scheme    of    German 
Social  Democratic  Party  (Ger.),  75; 
in  Siberia,  9;  Mission  (Belgium),  9 
Reform  of  the  Labor  Law  (Ger.),  63 
Regulation    of    Working    Conditions 
and  Protective  Legislation  (Ger.), 
72 
Rehabihtation  (Fr.),  29 
Relation    between    Employers    and 

Employed  (Eng.),  130 
Relations  of  Labor,  Capital  and  the 

State  (Eng.),  92 
ReUef    (Municipal)     (Ger.),    88;    of 

Unemployment  (Ger.),  58 
Remedial  Measures  already  Provided 

for  (Eng.),  118 
Removal  of  Restrictions  on  Output 

(Eng.),  112 
Re-organization,  Industrial  (Fr.),  30 
Replacement    of    Men    by    Women 

(Eng.),  98     ^         .    .  ^    , 

Report  of  the  Commission  on  indus- 
trial Unrest  of  the  Section  of 
Economic  Science  and  Statistics  of 
the  Brirish  Association  for  Advance- 
ment of  Science,  1916  (Eng.),  133; 
of  the  Commission  of  the  Section 
on  Economic  Science  and  Statistics 
of  the  British  Association  for  the 
Advancement  of  Science,  1917 
(Eng.),  138;  on  Conciliation  and 
Arbitration  (Eng.),  (Aug.,  1918), 
160;  on  Joint  Standing  Industrial 
Councils  (Eng.),  143 
Representation  of  Workers'  Interests 

(Ger.),  63 
Resolution  of  the  Trade  Umon  Con- 
gress, The  (Eng.),  130 


INDEX 


215 


Resources  (of  France),  31 
Restoration,    Dangers    of    a    Sham 

(Eng.),    lis;   Difficulties,   Dangers 

and  Opportunities  of  (Eng.),   114; 

of  Trade  Union  Conditions  (Eng.), 

Ill 
Restriction  of  Imports  into  Germany, 

18 
Restrictions  on  Output,  Removal  of, 

112 
Revolution  in  National  Finance,  A 

(Eng.),  178 
Right  to  Strike,  The  (Ger.),  63 
Rights  of  Labor  (Ger.),  58 
Roberts,  Geo.  H.,  Report  of,  151-56 
Royal     Commission    on    University 

Education  in  Wales  (Eng.),  197 
Runciman,  Mr.  (Eng.),  112 
Russia,  Reconstruction  in,  6 


Salaries  of  Teachers  in  Elementary 
Schools  (see  Committee  on),  198; 
Secondary,  Technical,  etc.,  Schools 
(see  Committee  on),  198 

Scandinavian  Countries — Reconstruc- 
tion in,  II 

Scheme  of  Social  Legislation  of  Social 
Democratic  Party  (Ger.),  60 

Scientific  and  Industrial  Research 
(Eng.),  191 

Scientific  Management  (in  France),  32 

Second  Report  on  Joint  Standing  In- 
dustrial Councils  (Eng.),  156 

Securing  Employment  for  All  (Eng.), 
169 

Securing  the  Labor  Market  after  the 
War  (Ger.),  84 

Serbia,  Reconstruction  in,  9 

Shipbuilding  Industries  {see  Board  of 
Trade  Committees),  188 

Shop  Stewards'  Committees  (Eng.), 
138 

Social  Contract,  The  New  (Eng.),  126; 
Democracy,  Fiscal  Policy  of  a 
(Ger.),  83;  Democratic  Party, 
Scheme  of  Social  Legislation  of 
(Ger.),  60;  Insurance  against  Un- 
employment (Eng.),  172;  Legisla- 
tion, Imperial  Office  for  (Ger.),  65; 
Policy  (Ger.),  86;  Reconstruction 
Program  of  the  British  Labor 
Party   (Eng.),   164;  Union   (Eng.), 

139 
Soldiers  and  their  Dependents,  Aid 
for  (Ger.),  74 


Soldiers,    Demobilization   of    (Eng.), 

104;  Discharge  of  (Ger.),  70 
Solutions,  Political  (Eng.),  125 
Spain,  Reconstruction  in,  11  f^ 
Standard  Rates,  The  Maintenance  of 

(Eng.),  136 
Standing  Committees  on  Engineering, 
Metallurgy,  Mining,  and  Glass  and 
Optical  Instruments  (Eng.),  191 
State  Control  (France),  39;  (in  Ger- 
many), 21 
State  Policies  (Eng.),  96 
Steadying  Real  Wages  (Eng.),  123 
Strikes,  Prevention  of  (Eng.),  112 
Studies  in  Labor  Welfare  (Eng.),  loi 
Street  of  To-morrow,  The  (Eng.),  182 
Sunday  Rest,   Proposed    Legislation 

for  (Ger.),  61 
Surplus  for  the  Common  Good,  The 

(Eng.),  181 
Suspended  Rights  of  Labor,  Nature  of 
(Eng.),  Ill 


Tariff   Questions,    Monopoly,   Trade 

and  (Ger.),  77 
Tax,  Inheritance  (Ger.),  81 
Taxation,  A  Principle  of  (Ger.),  78; 

Finance  and  (Municipal)  (Ger.),  87; 

and  Financial  Reform  (Ger.),  86 
Taxes,  Further  Proposals  for  (Ger.),  8; 

War  (Ger.),  79 
Teaching  Men  Trades  (Eng.),  120;  of 

Modern  Languages  (see  Committee 

on),  197;  of  Science  (see  Committee 

on),  198 
Technical  Research  in  England,  25 
Textile   Trades    (see  Board  of  Trade 

Committees),  88 
Thrift,  Efficiency  and  (in  Germany), 

18 
Tin  and  Tungsten  Research   Board 

(Eng.),  192 
Tonnage  (Germany),  18 
Trade  and  Tariff  Questions  (Ger.).  77; 

Development      of      (Eng.),      185; 

Policies  in  Germany,  19;  Prestige  in 

England,  Recovery  of,  26;  Relations 

after  the  War  Committee  (Eng.),  187 
Trades,  Teaching  Men  (Eng.),  120 
Trade  Union  Conditions,  Restoration 

of  (Eng.),  iii;  Conditions,  Pledges 

to  Restore  (Eng.),   113;  Congress, 

Resolutions  of  the  (Eng.),  130 


2l6 


INDEX 


Trade  Unions,  Concessions  to  (Eng.), 

112;    Reconstruction    Program    of 

(Ger.),  66 
Transformation  of  Industry   (Eng.), 

114 
Transition  Organization,  Workmen  to 

Share  in  (Ger.),  85 

U 

Unemployed,  Care  of  the  (Ger.),  64 
Unemployment  in  Germany,  Relief  of, 

58;  Social  Insurance  Against  (Eng.), 

172;  The  Prevention  of  (Eng.),  136 
Universal  Enforcement  of  a  National 

Minimum  (Eng.),  167 
University  Education  in  Wales,  Royal 

Commission  on  (Eng.),  197 
Unrest,  Industrial  (Eng.),  102 

W 

Wages,  Assuring  of  Decent  (Eng.), 
121;  Steadying  Real  (Eng.),  123 

Wales,  Royal  Commission  on  Univer- 
sity Education  in  (Eng.),  197 

War  Economic  Bureau  (Ger.),  40; 
Effects  of  the  (Eng.),  96;  (Ger.),  40; 
Indemnities,  No  (Ger.),  78;  Indus- 
tries, Exodus  From  (Eng.),  120; 
Materials,  Demobilization  of  (Eng.) 
hi:   Office   Demobilization   Com- 


mittee  (Eng.),    194;  Office  Emer- 
gency Legislation  Committee  (Eng.), 

199;  Taxes  (Ger.),  79 
Webb,  Sidney,  4 

Welfare  Committee  (Eng.),  139 
Whitley  Reports,  The  (Eng.),  140 
Women,    Demobilization    of    (Eng.), 

104-109;   in  Industry   (Ger.),   41; 

in  Industry  after  the  War  (Eng.), 

116 
Women's  Employment  Committee,  95 
Worker's  Interests,  Representation  of 

(Ger.),  63 
Working   Conditions,    Regulation  of 

(Ger.),  72 
Working    Program    of    the    German 

Social  Democratic  Party  (Ger.),  83 
Workmen    to    Share    in    Transition 

Organization  (Ger.),  85 
Workmen's  Insurance  (Ger.),  62 
Works  Committee,  Function  of  (Ger.), 

S3;  and  Industrial  Councils  (Eng.), 

13 
Workshop  Committees  (Eng.),  157 


Youths,  Demobilization  of  (Eng.),  no 

Z 

Zinc     and     Copper     Research     and 
Inquiry  Committee  (Eng.),  193 


AA    001119  198    8 


